The Problem
Legacy System Weaknesses
The fintech’s previous compliance workflow was built on good intentions but weak data. It involved:
- Static Entity Screening: If a company wasn’t listed in their subscribed registry database, it was marked as “low risk” by default.
- No Effective UBO Matching: Their tools couldn’t reliably extract or screen beneficial owners in less transparent jurisdictions, especially when entities used proxies or alternate spellings.
- Manual Escalations: Every “unknown” result required an analyst to manually search foreign registries often relying on poor translations, incomplete filings, or informal intelligence.
This led to growing backlogs, frustrated compliance analysts, and increasing concern that their KYC/AML risk framework might not hold up in an audit.