Financial Crime Client Risk Rating


Focus on Financial Crime Client Risk Rating

Client Risk Rating (CRR) is a key control for all AML regulated firms which forms part of an effective risk-based approach. CRR determines the level of Client Due Diligence (CDD) and Know Your Customer (KYC) that needs to be performed, and the level and frequency of ongoing monitoring activities across the client lifecycle.

Counting The Cost of Non-Compliance

Developing and implementing a regulatory compliant Client Risk Rating Methodology (CRRM) and effective CRR tool presents a number of challenges to firms. Some key questions to ask yourself are:

  • Could you demonstrate to the regulator how your existing CRRM meets laws, regulations and guidance applicable to your business activities and the jurisdictions in which your firm operates? Does it cover the required quantitative risk factors (Country, Entity, Product, Industry and Channel risk), alongside qualitative ‘Special Risk Factors’, such as the presence of PEPs, sanctions exposure, negative news and complex structures?
  • How do you stay on top of every regulatory update and have you faced a situation where you have had limited time to update your CRRM or jurisdiction risk list? For example, when there have been changes to obligations or published lists by international bodies such as the EU or FATF?
  • Do you currently maintain your CRR tool in a suboptimal solution, such as Excel, and are you able to immediately identify which clients are impacted by changes in your CRR risk lists?
  • Are you confident that your current CRRM is effectively designed and calibrated taking into consideration all risk factors and scope to apply a lower risk classification where appropriate (keeping in mind that undertaking reduced CDD/ KYC and ongoing monitoring in those cases could give you a competitive advantage alongside added operational efficiency)?
  • Can you provide a clear, detailed and objective rationale for the risk classification that has been applied to your client portfolio, based on regulation, guidance and external regulatory sources?
  • As an accountable individual, are you concerned about your current approach to rating the financial crime risk of your clients? Might you miss something critical and how do you address this concern?


Financial Crime Client Risk Rating

ClientSight is the most effective way to accurately risk rate the level of financial crime risk that prospective and existing clients present to your firm, ensuring full compliance with laws, regulations and guidance.

Compliance with regulation and guidance
Our leading financial crime CRRM is grounded in FCC regulation and guidance across key global markets, including the UK, EU and US, providing assurance you are fully complying with regulatory obligations.

Comprehensive financial crime risk coverage
ClientSight accurately assesses the risks presented by clients across a wide spectrum of financial crime risk types, including money laundering, terrorist financing, sanctions violations, proliferation financing, bribery & corruption, fraud and tax offenses.

Special Risk Factors
Key drivers of risk, including those required by regulation or identified by the firm, are configured in tools such as exposure to PEPs, sanctions, complex structures and negative news.

Simple to use and fully customisable
The risk rating of clients can be performed through a set of simple steps by providing information on their location, entity type, industry, product and delivery channel. The parameters used through the application are fully customisable to provide an accurate and appropriate assessment of risk based on your firm’s business sector, size and client base.

Detailed client reports
Through the customisable calculation of risk (based on country, product, channel, industry and entity type risk), the application provides informative reports on each client, including an overall financial crime risk rating to determine the level of due diligence, to inform your risk-based decision making.

Inbuilt PEP & Sanctions screening (optional)
The inbuilt screening capability, based on third-party leading sources, provides you with instant matching of your clients and their Ultimate Beneficial Owners and Legal Representatives based on up-to-date international sanctions and PEP lists.

Automated updates to jurisdiction risk list
ClientSight is integrated with Plenitude Compass, which is our leading Country Risk Rating Tool. This ensures that any changes to country risk classification such as the EU or FATF lists can be automatically applied. Our clients may choose to use their existing list or provider.

Maintenance of other risk lists
Plenitude also actively maintains and updates our proprietary industry, entity, product and channel risk lists on behalf of clients based on regulatory and other external inputs from international bodies.

Integration with existing systems
The application offers an API and can be integrated with your existing KYC, onboarding applications or transaction monitoring system, to assist with a seamless onboarding process and ongoing monitoring without additional complexity for your organisation.


ClientSight Online

Plenitude ClientSight is a comprehensive cloud-based Client Risk Rating solution that allows Financial Institutions, FinTechs and Professional Services Firms to effectively risk assess natural persons (individuals) or legal persons (entities) inherent financial crime risk.

ClientSight provides subscribers with an effective and efficient CRR solution, enabling regulatory obligations to be met and complex risk exposure such as PEPs, sanctions exposure and negative news to be identified and addressed as part of the client risk classification process. The tool has the holistic ability to assess each risk area through consideration of the following risk factors:

  • Country Risk
  • Entity Type Risk
  • Industry Risk
  • Product Risk
  • Channel Risk
  • Special Risk Factors (PEPs, complex structure, sanctions and negative news etc.)
  • The robust methodology underpinning ClientSight provides assurance to the FI that the financial crime risk exposure of the client is fully assessed, ensuring full compliance with laws, regulations and guidance; and mitigating the risk of regulatory fines or censure.

ClientSight Benefits & Outcomes

Assurance you are meeting CRR obligations
ClientSight has been deployed to a wide range of clients across numerous sectors, including global financial institutions under regulatory scrutiny by international regulators. Our CRRM will provide you with a robust methodology and overall assurance you are meeting your CRR and wider regulatory obligations.

Effective risk-based approach
A consistent, reliable approach to client risk classification allows for more accurate and consistent ratings, and ultimately the application of a more effective risk-based approach.

Proactively manage future
FCC obligations more effectively
Plenitude actively maintains and updates the country and industry risk lists used for the assessment based on regulatory and other external inputs, ensuring that your client risk assessments are future-proofed against changes to regulatory expectations. These are seamlessly integrated into the methodology as they occur

Reduced costs and improved
operational efficiency
The consistent and accurate assessment of the risks presented by clients will allow you to more effectively target your due diligence and ongoing monitoring at your highest risk clients, mitigating the risk of unnecessary effort and associated costs. The cost associated with deploying ClientSight is also significantly less than that of developing, implementing and maintaining a CRRM inhouse.

Clear rationale for both internal
and external audiences
Our leading methodology provides a clear and traceable basis for each risk rating, based on the requirements of financial crime compliance regulation and guidance across key global markets, including the UK, EU and US. The detailed reports provided for each client will identify the relevant data points and risk factors behind every rating.

More effective financial crime risk management
More effective client risk classification drives better risk management and ultimately risk mitigation outcomes, reducing your exposure to potential enforcement actions or fines.

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