European lender 4finance Group has deployed anti-money laundering (AML) and know your customer (KYC) compliance solutions across a host of countries.
The company said it has deployed FICO, TONBELLER and SIRON solutions across 10 countries and 20 back-office systems in just nine months. It took on this project to ensure compliance with new requirements of the 4th European Union AML Directive in online consumer lending.
“Working with FICO, we created an AML/KYC framework that bolstered our compliance without compromising on speed and our promise to customers,” said Andis Grandāns, AML Officer at 4finance Group. “In fact, fewer than 0.5 percent of customers applying for their first loan feel any impact on the speed of their loan being disbursed. As proof of our success, we have already undergone a regulatory audit on our AML/KYC processes and received a clean bill of health.”
The cloud-based FICO solutions are delivering audit-verified compliance with global and regional regulations while maintaining 4finance’s promise to issue customers a loan in 15 minutes.
4finance Group uses two modules of the FICO TONBELLER SIRON Anti-Financial Crime Solutions suite: SIRON KYC and SIRON AML. SIRON KYC screens customers against various watch lists (provided by Dow Jones), including sanction lists, special interest persons and politically exposed persons. Screening is performed when a customer applies for the first loan, and in a nightly batch that checks the whole customer database against any changes in the watch lists.
SIRON AML identifies suspicious customer behavior patterns. Each night all new transactions and the whole data set is run against the pre-set business rules, generating alerts to work with. 4finance monitors abnormal single transactions, aggregated transactions and scenario combinations.
Financial institutions, banks, insurance companies, and industrial corporations use FICO to fulfill their compliance obligations, avoid reputational damages, and live up to their own ethical standards. Follwing the 2015 acquisition of TONBELLER, the company’s Anti-Financial Crime Solutions Suite also software modules for Tax Compliance, business partner due diligence, counter-terrorism financing, risk assessment and risk & compliance dashboard, as well as KYC and AML.
Launched in 2008, 4finance Group claims to be Europe’s largest online and mobile consumer lender and has become one of the fastest growing global consumer finance companies, disrupting and reshaping consumer finance, offering fast and convenient access to credit. To date, 4finance Group has made loans totalling €5bn-plus.
Nearly half of all RegTech companies address AML or KYC regulation according to data by FinTech Global. The technology solutions offered by RegTech companies are directly related to regulatory issues or challenges faced by financial institutions.
Given the increasingly complex requirements placed by regulatory authorities on AML and KYC procedures, along with the heavy fines imposed for inadequate compliance, it is no surprise that a majority of RegTech solutions address these particular areas of legislation. Over 100 companies around the world provide offerings that makes compliance with AML and KYC regulation more effective or more efficient.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst