The Wwft requires financial institutions to subject customers to a periodic audit to monitor customer behavior and identify deviations. That doesn’t sound nice. But you can also look at it differently. It’s your customer! You definitely want to know what he’s doing, right? How else would you like to serve him well?
Monitoring is the heart of a good Customer Due Diligence process. This is all about obtaining a good picture of each customer, throughout the entire life cycle of that customer.
Companies that have this in order are reflected in lower risks and less chance of fraud. But good CDD can do more: it provides insights into the customer, and therefore commercial opportunities.
Financial institutions are obliged to report unusual transactions to the supervisory authority. It has drawn up guidelines for this. Some guidelines are objective, others subjective. In short: if as an institution you have the feeling that something is wrong, you must report it. But here’s where it gets tricky. Because many transactions that are unusual according to the rules are not necessarily suspicious.
The trick is to set up a system in such a way that you quickly identify the bad apples, without spending a lot of time chasing after ‘ false’ positives ‘.
Hyarchis can help with this
With our Risk Screening module your customers are continuously monitored and you minimize the chance of customers committing fraud, money laundering, bribery or financing terrorism.
This reduces the risk of integrity violations and reputational damage. But it doesn’t stop there. Because good insight into your customers opens up new perspectives. An unusual transaction can be a moment to connect with the customer.
Institutions that have their Customer Due Diligence in order turn a mandatory number into a commercial opportunity.
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