When ARGOS KYC goes through AML screening on the verified KYC individuals, we use various tools and methods on verifying whether the person is screened from the AML database. We have a default number of 90 when screening the individual from the AML database. The number is high enough to look carefully for any possibilities of involvement with money laundering or terrorist financing.
The higher the threshold setting number is, the lower possibility for companies on meeting individuals who may be related to money laundering. However, this may refer to more results on the AML report provided by ARGOS KYC. The threshold number is recommended to be set at 90, but the number can be changed depending on the company’s decision.
Let us explain how we go through the AML database from the individual information after the completed KYC. ARGOS KYC utilizes three factors when searching the KYC applicant name from the AML Database.
1. Name Match 2. Date of Birth 3. Nationality
1. Name Match
ARGOS KYC uses string distance algorithms to measure the difference between surnames. Also, we utilize an internal dictionary of similar first names/nicknames to find any matching names. For example, when searching ‘Tony’, the search result also includes ‘Anthony’. In order to accurately search similar first names, ARGOS KYC constantly updates the database to grant more accurate matches.
In addition, we keep in mind the language variation. That is why ARGOS KYC searches names based on Levenshtein Distance Algorithm and original scripts/similar pronunciation. With Levenshtein Distance Algorithm, Argos KYC can know the percentage of similarity between the data. It is especially convenient when distinguishing similar alphabets including spelling checks.
2. Date of Birth Match
The date of birth is rather simple than the name match factor. It is used to verify whether the KYC applicant’s date of birth matches any of the risk person data in the AML database.
3. Nationality Match
Similar to the date of birth match, this verifies the match in the nationality within the ARGOS database.
When KYC is submitted, ARGOS KYC goes through AML Screening for the very first time to verify whether the user is free from any possibilities regarding money laundering. There are seven categories. Find out who is considered high in risk and who is low.
AML Screening is a way to check wether a person is free from money laundering risk. The way is simple. Compare the approved KYC person to the AML database. AML database consists of seven categories.
1. Politically Exposed Person(PEP)
Any individual that is considered a Politically Exposed Person, from Head of State to Members of Parliament, Members of the Board of State-Owned Enterprises or Ambassadors and individuals representing their countries interests abroad.
1-1. PEP-CURRENT
Individual is a current Politically Exposed Person.
1-2. PEP-FORMER
Individual is a former Politically Exposed Person.
1-3. PEP-LINKED
Individual is a Politically Exposed Person by association.
2. Sanction (SAN)
Any individual or entity that is subject to sanctions by either the European Union, the United Nations, the United States Office of Foreign Assets Control and State Department and Her Majesty’s Treasury in the United Kingdom. More than 180 global sanction lists published from UN, EU + more than 390 official lists.
2-1. SAN-CURRENT
Individual is currently Sanctioned.
2-2. SAN-FORMER
Individual is formerly Sanctioned.
3. Regulatory Enforcement List (REL)
Any individual or entity that has been fined or in some other way subject to action by any financial regulatory body. Or Any individual or entity that has been named in official documentation from Law Enforcement bodies such as the Police or any other agency such as Interpol or the FBI. Also, those individuals and entities cited in Court and legal documents of that nature.
4. Reputation Risk Exposure (RRE)
Any individual or entity that has been reported in global newspapers, news sites or other media as being involved in financial crime.
5. Profile of Interest (POI)
Any individual or entity with expired status of PEP or out-of-date record of RRE.
6. Insolvency (INS) (UK & Ireland Only)
Any individual that has been declared as bankrupt or insolvent.
7. Disqualified Director (DD) (UK Only)
Any individual that has been disqualified as acting as a director of a company.
Category and Risk Level
Red Flag - High
SAN-CURRENT,
PEP-CURRENT,
REL
Red Flag - Medium
PEP-LINKED,
PEP-FORMER,
SAN-FORMER,
POI
Red Flag - Low
RRE , INS, DD
Not Screened
No matching results in AML Screening.
Why ARGOS KYC AML Screening?
We provide most up-to-date and comprehensive global AML database. Also, a real-time AML reports on risk profiles. Multiple language support is available. Please contact our team to try out test version of KYC and AML Screening. We got you covered!
KYC and AML Screening Process
Did you know that there is a process for KYC and AML? It may be confusing when you do not know well about the KYC and AML process flow. In this article, we will cover how the identity verification process flows along with Anti-money laundering screening.
KYC first, and then AML Screening
KYC(Know Your Customer) is verifying individuals’ personal identities. The process is simple and easy as users go through minimal steps, submitting an ID card and a selfie photo. Once the KYC is done and his/her identity is verified, then we move on to the next step, AML Screening.
This means that when the KYC process is not finished or KYC got rejected asking to try again, then it cannot move on to the AML screening step. In order to screen the individual from the AML database, KYC must be approved. Pending or rejected KYC projects cannot go through the further step.
Approved KYC does not mean free from Money Laundering Risk
Approved KYC is followed by AML screening. The screening process checks whether the KYC-approved applicant matches the person in the AML database. Client companies may prevent money laundering by deciding who can onboard immediately and who needs an additional check.
KYC-approved customers are checked and identified as how they claim to be. However, in the KYC stage, we do not know whether the person is free from money laundering risk chance. KYC only lets you know the person is who they say is with the submitted ID card and a selfie photo. We can distinguish if the person is safe from money laundering possibilities at the next stage which is AML screening.
Individual service: KYC and AML Screening
AML Screening is done to the approved KYC during the onboarding step. It is done only one time. If the client customers wish to check money laundering risk to their customers, we offer AML Only service.
ARGOS KYC offers ‘KYC + AML Screening’ service which is widely used by our current customers globally. Individual service purchase is also available at your own preference.