John Davies, Chairman
Today more than ever, banks and other financial institutions across the globe are at risk of being inadvertently exposed to financial crimes such as money laundering and terrorist financing due to inefficient Customer Due Diligence (CDD) processes. This has brought about a steep increase in anti-money laundering (AML) and Know Your Customer (KYC) regulatory requirements. Adding to this complex environment is the lack of consistency in results when searching for adverse information due to a mostly manual approach practiced by the finance institutions. Although emerging Regulatory Technology (RegTech) solutions have streamlined the entire CDD process for more consistent results, these solutions are not complete without follow-up analyses of the data by compliance officers who have a strong handle on risk and financial management. In other words, the technology simply cannot be effective in isolation without human expertise.
In a sense, kompli-global is doing just that. Intersecting human knowledge with artificial intelligence (AI), the company is defining RegTech in its own terms. Set to announce the world’s first digital compliance assistant, Samantha, kompli-global is pushing the industry forward with a new standard for taking care of compliance obligations; addressing KYC, AML regulations, and due diligence processes in an easy, automated, and accurate manner. In addition, Samantha is supported by a global community of human compliance investigators—a much-required bridge between machine and man in the compliance landscape. “In order for RegTech to work, it has to provide a specific outcome and a very high level of consistency,” asserts John Davies, Chairman, kompli-global. “Samantha’s key advantage is “her” ability to consistently follow regulatory processes in the same way and at all times—without exception.”
Human-Assisted Artificial Intelligence
kompli-IQ, the company’s technical platform uses proprietary AI and deep search technologies to interrogate a wide variety of global data sources and web content, Samantha helps customers seamlessly solve their regulatory challenges and properly monitor their customers. Essentially, Samantha does all the heavy lifting of a human in a significantly shorter amount of time. A day’s work is a few minutes to her. According to Davies, “Nine times out of ten, there will be no information that banks should be concerned about.” Nonetheless, in a world where criminals and terrorist organizations are using increasingly sophisticated techniques to cover their tracks, no information should be taken at face value. Banks are still required to conduct all checks and interrogations to find indications of potential financial crimes, which kompli-global labels as “bad actors.” Samantha’s ability to do all those checks in a matter of minutes through AI as opposed to hours of human effort presents huge savings for the banks in time, labor, and resources for a sure-shot ROI. In addition, there is the consistency factor, which cannot be replicated by human effort.
We help banks find critical information that otherwise wouldn’t be available or is far too time-consuming and costly to find
What makes kompli-global unique in their approach is the fusion of AI with human experience. It is what makes Samantha a highly effective regulatory platform for banks and other financial institutions. Apart from the technology, the company employs the very best AML and KYC specialists who know exactly what to look for and how to look for it in searching for bad actors. “Though we have created the technology to mimic this exact process for the bank, it is the combination of human understanding and knowledge of regulations and risk that truly makes Samantha an efficient and effective solution,” says Martin Pashley, Director and Chief Commercial Officer, kompli-global.
The reason for this is that even though Samantha does a flawless job in “searching” for information, the information is often suppressed or even falsified in many countries that may have different compliance regulations. Therefore, it may take a local search from within the country to determine the integrity and reliability of the information found by Samantha. Currently, kompli-global employs staff in 66 office around the globe covering 158 countries with comprehensive knowledge of all the requirements and principles underpinning CDD within their territory.
Seeing What Is Usually Invisible
Banking organizations around the world have to assess whether their customers are low, medium, or high risk. However, “nothing is inherently low risk or high risk,” claims Davies. “Today, we see banks implement risk policies that are fundamentally flawed, either because they lack the proper understanding of rules and regulations or it is far too time-consuming and resource-heavy for them to carry out a consistent KYC or CDD process on all their clients.” In contrast, Samantha continuously monitors all a bank’s clients 24/7. In doing so, she looks at over 500 specific words that might be associated with financial crimes. These are known as “stem words.” Moreover, Samantha is multi-lingual, so she can understand the stem words in every language and their local variations, as well.
By bringing in that contextual knowledge and intelligence to comb through various data sets and sources of information, Samantha is taking the kompli- IQ platform to the next level. Using unique algorithms, she can access both structured, indexed data from mainstream search engines and in government databases and regulatory directories and unstructured unindexed data found in the Deep Web or the invisible web as it is known. Essentially, using kompli-IQ banks can scan billions of pages to find the information that is relevant. Once the data interrogation is over, the search platform will bring all the information back together, sort it, and present it in a user-friendly way for easier analysis. With less than 3 percent of the entire World Wide Web being indexed by search engines, this is a huge step forward that compliance officers would never be able to undertake manually within an acceptable timeframe. Even more so, they do not have to be concerned about when and if any of these databases are updated because Samantha will know about it and send an alert to the most appropriate person.
The platform can also be white-labeled which allows third party data providers to easily integrate kompli-IQ into an incumbent system to complete their regulatory proposition.
Martin Pashley, Director & Chief Commercial Officer
kompli-IQ is highly configurable which allows clients to run only specific stem words and carry out monitoring at specific times only—Samantha allows them that flexibility. In a nutshell, “We help banks find critical information that otherwise wouldn’t be available or is far too time-consuming and costly to find,” states Pashley. “This adds an extra element of reliability on top of Samantha’s consistency.”
Looking ahead, kompli-global plans to continue driving innovation and find new ways of improving the overall regulatory processes in the banking industry. The whole idea is to provide a global service and recognize the unique challenges in certain jurisdictions so that financial institutions can better service their customers. “At the end of the day, we are only able to find information that is published somewhere. Therefore, there will always be a challenge,” remarks Pashley. However, the company’s real goal is for Samantha to become a true C-Suite digital assistant. By embodying the technology, Samantha’s human-like features enhance her ability to engage in real conversations. Through integration with Amazon Alexa and Google Voice, this would also make Samantha the first ever digital compliance assistant that is voice controlled.
"Samantha’s key advantage is being able to consistently do regulatory processes in the same way and at all times— without exceptions"
Davies says, “Imagine waking up in the morning and just talking to Samantha about any new updates or publications on your customers or key competitors that she has conducted overnight. You can literally start your due diligence while having breakfast or commuting to work.” Needless to say, the range of applications and potential opportunities here is massive. Moreover, with Samantha being able to suggest additional interrogations based on related companies and their subsidiaries, kompli-global is giving clients the key to what is probably the most comprehensive understanding of bad actors that they have ever seen. One thing is for certain— Samantha will continue to make the lives of banks and financial institutions across the globe that much easier by allowing them access to an unparalleled breadth of data, hence alleviating their greatest regulation challenges.