Introducing Ripjar One: The ultimate AML risk management solution

“There’s got to be a better solution.”

This is what every compliance officer says when talking about screening today. Little to nothing has changed on the technology and data front, despite ever increasing demands placed on compliance professionals.

This once simple compliance process is now anything but. Sanctions screening has grown beyond simple Latin alphabet name matching to include multi-alphabet and street address matching, not to mention the newer regulatory requirement to identify related and “network” members. Politically exposed person (PEP) identification has moved well beyond matching against established third party lists, to include potential unrelated and non-network “close associates”. Adverse media screening, once destined for the privileged few, is increasingly being demanded across all client segments.

Despite this changing landscape, regtech providers haven’t budged. “Static” data providers continue to generate lists based on their own assessments of who is important, and who isn’t, regardless of your risk tolerance. Or, worse, they provide media feeds of literally billions of articles, asking you to filter relevance. Screening tech firms are even worse, employing “fuzzy logic” (lots of fuzz, little logic) ostensibly to show their solutions’ ability to reduce false positives, even though regulators, from the beginning, primarily emphasise avoiding false negatives.

But from a risk perspective, the situation is even worse. Screening occurs on many levels – clients, payments and counterparties. The risk demands are similar across all levels, however the regtech solutions produce at times materially different outcomes. Screening at each level differs, as name matching and risk scoring typologies differ markedly. Similar risks are treated differently, causing frustration for any risk manager.

All this changes today.

It’s time to move to a 21^st century solution and embrace the latest in technology from advanced data science, probabilistic programming and AI, all brought together in Ripjar’s powerful tech. Combine all your static data, including third party lists from sanctions, PEP and adverse media providers, as well as your own lists such as Do Not Do Business (DNDB), Approved Counterparties, and “Reported”. Then integrate this with your dynamic information, such as payment and account transaction data, to create a single “risk brain” – a holistic assessment process that produces the far too elusive “one pane of glass” for all clients, counterparties, originators, beneficiaries and, even, vendors.

Welcome to the Ripjar One family of products

Ripjar One’s product family uses dynamic risk profiling to give compliance officers the power to achieve in today’s environment. Rather than relying on static risk profiles judgmentally created by third parties, dynamic risk profiling creates your own unique profile for each of your clients, counterparties, and even payment originators and beneficiaries. Powered by the latest AI technology, each profile is live, constantly checked in accordance with your rules, scored against your risk appetite, and continuously updated for new developments from both the outside world (such as sanctions or adverse media) and the inside (such as a new transaction monitoring alert or DNDB designation).

How dynamic risk profiling works

Centralise: Combine all your client name screening activities into one engine, regardless of whether the data is structured (by a third-party or your firm) or unstructured. This is then all searched as one, powered by the latest probabilistic-based name matching capability, and expandable to incorporate the results of your transaction screening and transaction monitoring systems’ outputs.

Unify: Subject all your processes to a single risk scoring methodology, completely configurable to meet your needs. All your screening risks will be treated not just in a similar, but the same manner.

Clarify: Build your own profile for every client and counterparty. Relevant output from your third party and internal sources is blended into your very own curated, dynamic risk profile. The profile is AI-generated, summarising the critical data points, and even highlighting links with other related and unrelated parties. The profile has a unique ID so it can be easily retrieved in milliseconds. The profile is the alert, sent to your team for review. And your Digital Assistant double checks your team’s work, notifying you of potential discrepancies.

Monitor and update: Your Digital Assistant works in the background constantly to update profiles when material changes occur and alerting you when necessary. These changes are highlighted to expedite review.

The benefits are numerous

• One risk profile from all systems transforms static data into a dynamic answer, constantly updated, giving you the most complete risk picture.
• One system eliminates redundant work arising from running multiple systems and processes, substantially increasing productivity.
• False negative risk is substantially reduced through consolidating different characterisations from different lists into a uniform whole and having your Digital Assistant work as a “sixth pair of eyes” to double check your screening team’s work.
• False positives are nearly eliminated from the use of a mathematically-driven probability matching schema and AI assessed alerting which prioritises alerts for review according to your rules, providing exponential ROI.
• Identify hidden relationships and networks to significantly improve your compliance efforts.

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