Telecom and ICT company
Having to comply with the Sanctions Act was reason for this customer, a telecom and ICT company, to look for a supplier in 2017 that could assist in screening large amounts of customer data.
For financial organizations, legislation and regulations with regard to sanctions are known and a daily occurrence. In organizations within other segments, such as telecom & ICT, the knowledge is sometimes not enough. That is why a number of important decisions had to be made about the internal division of tasks for this customer in the first instance. During this process, LexisNexis was able to proactively think along with the organization with their expertise.
Pep and sanction check with Nexis Diligence®
The Sanctions Act sets legal requirements for (financial) institutions to safeguard their integrity and thus combat unwanted trade, money laundering and terrorism. Organizations covered by the law must identify their affiliates and take appropriate action if those affiliates appear on a sanctions list - and are therefore suspicious.
Both LexisNexis' Nexis Diligence and CleverKYC are used by the security team's employees to check and screen the company's customer records for Politically Prominent Persons (PEPs) and sanctions list entry.
Using CleverKYC, the team can upload large amounts of customer files into the system on a daily basis to maintain an audit trail. When there is a positive hit on a sanction, the security teams use Nexis Diligence for a little more depth. Nexis Diligence collects additional information to investigate which companies and persons pose a risk to an organisation, such as negative news, UBO data, legal and company information. The positive hits are checked and forwarded to the Compliance team for further investigation. For example, if the hit turns out to be a person with a terrorist background, the management team must decide to end the services.
From the legislation we had to comply with the Sanctions Act. After internal consultation, it was
decided to look for suppliers with solutions that we can use for screening customers. LexisNexis emerged as the winner, partly due to price and performance.
I liked that the implementation was so open. After all, this phase is about exploring each other: what are the options and how are we going to approach them? I think that led to a good end product.
In 2018, the implementation at the customer gradually started. What took quite some time is to collect the data from the various business units and different systems and to place it in the correct format.
The flexibility of the CleverKYC product team allowed the technicians to interact very well with each other, so that frequent meetings ran smoothly. This ensured a close connection with the wishes of the customer. Together with the customer, LexisNexis has focused the method on entering, checking and screening customers.
From the finance department, it is expected that the security team handles the screening of the customers in the right way. The process has been running since September 2019 and the safety team has been fully trained. Thanks to CleverKYC and Nexis Diligence, the company now screens their customer base for sanctions on a monthly basis and the team provides a full audit trail of their activities.