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High Net Worth Individuals
In a world where a pair of shoes or a bottle of wine can cost £15,000 or more and where a good lunch or dinner with the family could trigger most transaction monitoring rules, it is no surprise that traditional transaction monitoring platforms struggle to produce meaningful alerts or data that can be used to effectively assess customer’s behaviour.
Many organisations monitor HNW individual’s transactions separately alongside a more manual yearly KYC process, using the transaction monitoring platform to alert the exceptions.
However, looking at the data in the transaction monitoring platform there is a lack of context to even answer the most basic of questions, for example, has my customer’s behaviour changed from last year to this year? In this instance, I can compare their activity to the KYC data and see if they are doing what they said they would, but the fact they have £5m in and £7m out over the year is not enough to base a decision on. Where has the money come from and gone too? Which countries, companies, investments and family members are involved in this? What have they bought and where have they done this?
At Quantexa, we can analyse the next level of detail and the relationships and circles that these individuals move in. We have seen people spend millions to buy football teams and then continue to give money to these assets. It is only through using entities and networks that you can join data to give you the context to knowing something different has happened.
Entity resolution and networks allow you to enrich the foreign counter parties to know if these transactions make sense.
Quantexa also uses Contextual Analysis, combined with dynamic peer profiles, to more accurately assess the HNW individual’s behaviour. A person with $50 million in assets behaves very differently to someone with $250m in assets and they all behave differently to billionaires and royalty.
Being able to monitor activity in context of everything that it is connected to, gives the bank or financial institution valuable intelligence on what these individuals are doing. This can be used to more accurately assess them for AML risk, but also can be used to determine if they have the right products and services.