The lab is a testing and assessment ground for a range of AML initiatives including policy and process streamlining, improved Management Information (MI) solutions, new systems and new data sources. Successful initiatives are presented to our clients as potential ideas for efficiency improvements.
The lab also enhances the operation of our Managed Services by improving operational efficiency and MI.
Lysis currently has the following initiatives running within our AML Innovations Lab:
Development of a KYC policy blueprint based on the UK’s 2017 Money Laundering Regulations (MLR2017) and the EU’s Fourth Money Laundering Directive (4MLD)
Development of a KYC Business Management and MI solution which can be implemented to work with any existing KYC Workflow tool
Development of a KYC policy blueprint based on MLR 2017 and 4MLD. Lysis is developing a best-practice KYC Policy based on 4MLD and MLR2017.
Development of a KYC Business Management and MI solution which can be wrapped around any existing KYC Workflow tool.
William Pollard -
"Learning and Innovation go hand in hand . The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow."
Understand the latest trends in technology and the opportunities they present
Explore and map the existing and emergent RegTech landscape
Examine innovative ways to improve all aspects of the client lifecycle operational processes
Understand and document the relevant use cases and articulate the business case for improvement
Assess solutions against a pre-determined industry leading criteria
Compare existing solutions and search for compatible products which can provide enhanced solutions
Bring existing solutions to clients via multiple delivery mechanisms including strategic partnerships
Build market leading solutions to solve real business problems
Partner with clients to test innovative solutions in a safe environment
CLIENT LIFECYCLE MAP
Here is our interpretation of a healthy Client Lifecycle Map
POLICY (GLOBAL VS LOCAL) - Ensuring the internal organisation’s global as well local policies are adhered to as part of the on-boarding process.
PROCEDURES - Local operational procedures need to be considered. Also includes any handbook or manual to be adhered to while working on client files or data.
CREDIT/ LEGAL AGREEMENTS - Client credit documentation (such as CSAs or ISDAs) and legal agreements to ensure compliance. Plus the connectivity into the legal and credit group that includes information sharing between the two teams
REGULATIONS - Adhering to the anti-money laundering regulations set up by global regulators (NCAs) and policy bodies (such as FATF)
CONTROL FRAMEWORK - Internal controls in place to identify and mitigate any risks involved. Understanding the control points, understanding who is responsible for what actions and ensuring all systems link into a governance framework
ID VERIFICATION - Verification of ID documents of the owners and controllers of the client being on-boarded. Identification includes identifying the individuals and entities involved, whereas verification involves validating their credentials through sources such as the government registries, and other data sources.
REG CLASSIFICATION - The regulatory classification includes various regulatory parameters that must be considered such as FATCA, MiFID, EMIR and Dodd Frank.
RISK RATING - Risk rating of the client based on the firms risk appetite taking into consideration factors such as the nature of business, country of operation. PEPs etc.
CLIENT DUE DILIGENCE - Understanding the ownership structure of the client and screening the controllers and the shareholders involved. Includes the review of their business and location of operation/ origin.
ROLLING REVIEW - To ensure continued compliance with existing AML and KYC regulations and policies/ procedures supported by updated and refreshed data and documentation. This is often known as the periodic review.
PRE-ALLOCATION - Pre-allocation of work is required to manage the work flow efficiently. Data must be grouped based on their types such as a dormant accounts or entities with specific risk types and then allocated. Grouping and linking of associated companies can provide efficiencies
CLIENT BASE MAINTENANCE - It is important to maintain the client database and keep details up-to-date. This includes all relevant details of the client including the risk assessment
MONITORING - Ongoing Screening - identifying any adverse news on the client being on-boarded. Can be done on a periodic basis but increasingly on a trigger basis.
Transaction Monitoring – alerting, investigating and potentially reporting suspicious activities
REPORTING - Internal and external reporting of the information gathered.
WORKFLOW - A robust workflow is essential to the orderly onboarding and maintenance of clients and provides the backbone to any technology solution. It should focus on key activities such as separation of global and local components, segregation of processing and servicing by identifying relevant processes and subprocesses, and by minimizing manual inputs and variations.
INTERNAL DATA - Data retrieved from inside the organisation to make decisions in running the operation successfully, such as sales data, product information, transactions and financials.
Management Information (MI) - Data or statistics used to control and measure the performance of the business. Getting a good MI dashboard for the CLM process in essential from board level through the MLRO and the day to day operational management.
COMMUNICATIONS - Ability to communicate effectively across the organisation is important. Use of API’s for various systems to communicate with each other and the need for different departments within the organisation to communicate effectively is paramount.
EXTERNAL DATA - Data retrieved from external sources on your clients (entity data, news, ownership etc).