Artesian Risk and Compliance Hub

Artesian will be launching its Risk and Compliance Hub, which supports front-line KYC checks, in 2019.
Artesian will be launching its Risk and Compliance Hub, which supports front-line KYC checks, in 2019.

Artesian Solutions CEO Andrew Yates published a year-in-review blog and a preview of their upcoming Artesian Risk and Compliance Hub (ARCH).  The new ARCH capabilities will extend their social selling platform into Know Your Client (KYC) reviews at UK banks. ARCH is in early testing.

ARCH leverages Artesian capabilities around interpreting structured and unstructured data ”to create useful flags and to drive appropriate actions.”  Artesian already is on the desktop of relationship managers (RMs) at most of the major UK banks.  “This puts us in a unique position to make insights regarding financial and KYC risks available to the front-line as a pre-screen, to ensure that corporate banking relationships begin with an appropriate understanding of risk.”

Arch supports an automated audit trail and storage of evidence.  Early tests found ARCH to be “100% accurate in reflecting policy in pre-screening.”  Arch also reduced the time spent in gathering risk assessment data by 90% and identified 14% more risk issues compared with manual processing.

By providing a pre-screen at the front-end of client discussions, RMs can focus on new clients that will pass muster during the onboarding review process.  This process makes both relationship managers and compliance professionals more effective.  RMs will no longer be spending time with prospective clients that won’t pass compliance review while compliance professionals can focus their attention on more complex reviews which require their skill and expertise.

“ARCH gives companies control of a sophisticated decision engine to enable data being accessed to have rules applied and flags created. It means that Relationship Managers can see a summarised view of what their central risk teams assessment of a potential client would be, before spending time and money engaging with them. The automation aspect of this is fundamental as it brings efficiency, consistency and control to the areas it transforms.

But more than that, it places compliance at the heart of the business – front of mind for every member of staff, informing every decision, instructing every interaction and shaping every relationship from pre-screens for new customer prospecting through to long-standing client development.”

Artesian CEO Andrew Yates

Yates cited McKinsey research which notes that the risk function at financial institutions is being transformed “with the detection, assessment, and mitigation of risk” being transferred to all employees by 2025.

Risk and Compliance tools are a greater focus amongst European sales intelligence firms due to the availability of private company registry data.  While US private companies provide only minimalist filings with Secretaries of State offices (with a few exceptions in insurance, banking, and nonprofits), UK company registration data includes directors, shareholders, and financials.  Other UK compliance data includes sanctions lists, Politically Exposed Persons (global government officials and relatives), disqualified directors, gazettes (shuttered business and those in receivership), and traditional credit reports.  Vendors such as Artesian, DueDil, and Bureau van Dijk have recently emphasized compliance and risk tool development over sales intelligence offerings.

Artesian reached 30,000 users in 2018 with their user base tracking over 800,000 companies.  According to Yates, Artesian customers “have received 12.5 million actionable insights, 2.5m unique computational matches each week, automated the equivalent of 2 trillion Google searches per week (13bn per hour), and have made 523,813 useful connections using Artesian data.”

Artesian staff provided over 350 training sessions, webinars, and workshops to more than 3,000 users in 2018.  Artesian Academy delivered an additional 1,200 multi-media tutorials, certification modules, role-based tips, and social media best practices overviews.

DueDil: Interactive Lists, Ownership Selects, Webforms, & Compliance Checks

DueDil Interactive List Segmentation Analysis
DueDil Interactive List Segmentation Analysis

European company research firm DueDil rolled out a set of enhancements spanning list building, list analytics, compliance validation, and their API. DueDil’s products are used for sales intelligence, company research, and onboarding Know Your Client (KYC) / Anti-Money Laundering (AML) compliance checks.

DueDil added four Ownership search filters to assist with targeting firms with concentrated shareholdings “ripe for takeover.”  The new screens include Total Shareholding Count, Individuals Count, Companies Count, and Shareholder Name.

The firm rolled out interactive lists that build upon their list capabilities.  “Interactive List Reports offer a unique way of mapping whitespace and identifying new prospects, based on high-performing segments identified in a List Report,” said Product Marketing Manager Sam Hockley.  “By accessing a customer list in Report view, common traits and trends are visualised, and the characteristics of quality customers can be easily identified.”

Users can now view any List Report segment in Advanced Search, surfacing the companies and related criteria.  Users can drill down on segments to research anomalies or focus on size brackets within the list. The functionality can also be used to display similar companies while suppressing the original list, providing a tool for expanding the pool of ABM candidates.

Both the browser and API now support compliance checks including Politically Exposed Persons (PEPs), sanctions, fraud warnings, and adverse media.  These checks are part of standard KYC / AML onboarding steps.  The Adverse Media Check includes Gazette Status (receivership, shuttering a business) and County Court Judgments.  Politically Exposed Persons lists identify government officials and close family members to flag funds which could be related to bribes, kickbacks, and money laundering.  Sanctions lists flag individuals associated with terrorism, trafficking, and money laundering.

“Conducting these checks with DueDil allows businesses to identify any and all linkages of corporate ownership and associated individuals. As a result, when a check is run against a specific entity, that check can be extended to all of these related parties, returning any flags or sanctions across the entire group. Advanced datasets reveal the ultimate beneficial owner of a business and enable checks for PEPs and any sanctions levied against a business,” said Hockley.

DueDil performs KYC/AML checks against both businesses and individuals.  People checks are performed in conjunction with Callcredit.

DueDil also recently launched API support for webform auto-population and enrichment.