Multinational AML screening precision: How FinScan reduced false positives by 62% for a leading Latin American payment processor
A large Latin American-based payment processor, operating across 15 countries, faced escalating compliance challenges due to the absence of centralized data collection methods. The company’s expansion amplified the complexity of adhering to different regional laws and regulations governing data screening and reporting. Recognizing the critical importance of compliance in this multi-jurisdictional landscape, the payment processor sought the expertise of FinScan to enhance its global compliance efforts.
CHALLENGES & GOALS
The payment processor encountered significant challenges and established key goals:
Multinational compliance complexity: Operating in more than 15 countries meant navigating a web of regulations governing data screening and reporting, posing substantial compliance hurdles.
Data standardization: The company’s data was plagued by inconsistencies, including variations in language, regional differences, and discrepancies in capturing name order during onboarding. The company’s existing transliteration technology led to inaccuracies in matching algorithms, resulting in missed variations and an excessive number of false positives.
The payment processor partnered with FinScan to implement a comprehensive solution that provided:
Data quality assessment: FinScan performed a rigorous data quality assessment on all the company’s data sources to understand the extent of the challenges. The assessment revealed a lack of standardization in global data collection, requiring immediate attention.
Advanced naming patterns: FinScan’s advanced naming patterns were used to standardize data from 15 different countries. This involved correcting translation errors, addressing regional naming differences common in languages like Spanish and Portuguese, and recognizing variations in name order. FinScan’s technology excelled at accurately screening native-to-native names, allowing for the inclusion of relevant name extensions.
RESULTS & IMPACTS
The implementation of FinScan yielded significant results for the payment processor, including:
Enhanced accuracy: FinScan’s precise data standardization process resulted in higher accuracy, allowing the payment processor to confidently screen across multiple jurisdictions and produce precise results. This, in turn, mitigated the risk of fines and reputational damage.
Improved matching quality: The meticulous standardization process identified 82 sanctioned hits that had previously gone undetected, safeguarding the organization from potential fines.
Substantial time savings: FinScan helped reduce the false positive rate by an impressive 62%, saving the company more than 19,000 hours of manual review time, enhancing operational efficiency.
Partnering with FinScan enabled the payment processor to successfully address its complex compliance challenges. By standardizing data and leveraging advanced naming patterns, the company achieved higher accuracy and reduced false positives and improved its overall compliance posture. FinScan’s solution not only protected the organization from potential fines but also significantly enhanced operational efficiency.