Having already established itself as a leader in automated regulatory compliance, Muinmos has now taken additional steps to make it easier for businesses to meet regulatory demands.
Remonda Kirketerp-Møller founded Muinmos back in 2012 after she’d grown frustrated with the glacial speed at which businesses could onboard clients. The problem, she noted, was that they were weighed down by massive compliance obligations. However, the lightbulb moment came when she noted that many of these due diligence procedures could be automated. So, Kirketerp-Møller set out to do just that.
Eight years later, the startup has not only picked up a reputation as being a specialist in its field, but it has also found itself on the coveted RegTech100 list of the 100 most innovative companies in the sector and bagged accolades at the Global Forex Award 2020 ceremony.
On the back of its success in Europe, the company has also recently opened a new office in Singapore and has already enjoyed success in the region.
Now it is taken another step towarcds making it easier for businesses to meet their compliance targets by splitting its compliance engine into three separate product modules: mPASS, mCHECK and mRX. Each product module is now available as a standalone application or as a whole under the Muinmos compliance engine.
The idea is that this will empower financial institutions with greater flexibility and a plethora of options for their compliance teams. This, Munimos suggested, would be especially important as the Market in Financial Instruments Directive and Regulation (MiFID II) – one of the most complicated pieces of EU legislation to follow – is about to get even more complicated with new client categorisation obligations mandated by the European Securities and Markets Authority having just snapped into action.
“We have segmented our products in response to client feedback and we believe this is perfect timing for the new MiFID II guidelines from ESMA,” said Kirketerp-Møller, the company’s founder and CEO. “In fact, the recommendations from ESMA are the essence of what we have been advocating for years with regulators and clients alike. Muinmos is well-placed as the frontrunner in having a specific compliance solution that effectively meets these new guidelines fully.
“Many compliance teams previously prioritised KYC and AML above client categorisation but are increasingly realising the importance and complexity of client categorisation especially as financial institutions are rapidly taking on more cross- border business.
“Our clients are reaping the benefits in terms of speed and accuracy of using AI-based technology to enable them to correctly categorise clients and gain an overview of the suitability and appropriateness of financial products they wish to offer and market to them. Correct client categorisation is absolutely critical from the outset. Of course, KYC and AML remain important, but they should be seen as a piece within the puzzle as opposed to the leading component.”
So, here’s how they work. mPASS is a cloud-based proprietary compliance module powered by artificial intelligence. It enables any financial institution to secure continuous regulatory compliance and within seconds, determine whether a client can be on-boarded.
Why is that important? Well, because it also includes ensuring correct client categorisation from the outset, which Muinmos said is essential under the new MiFID II guidelines in order to know which products and services to sell to them, to protect both the financial institution and the clients, and to avoid significant fines for regulatory breaches.
The engine also included mCHECK, which is an anti-money laundering and know your customer service that leverage Muinmos’ multiple partnerships with AML data sources.
The third module, mRX is regulatory matrix, which provides risk assessments based on a number of parameters including jurisdictional, regulatory permissions, legislative and client risk assessments.
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