Managing Sanctions Compliance in a Global Economy Part 3: Implementing Customer Risk Profiling

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In today’s global economy, opportunities for growth are often accompanied by an increasingly complex landscape of rules, regulations and compliance issues. Since compliance is now a component of everyday business operations, businesses must employ a strategic, holistic program with several key components, including customer risk profiling.

CSI’s Sanctions Compliance: Implementing Customer Risk Profiling white paper examines the compliance challenges companies face, possible technology solutions and recommendations for success. While customer relationships are essential to business, one illicit customer can lead to serious consequences or penalties for organizations. That’s why customer risk profiling—the verification of a customer or vendor’s identify and ensuring it is prudent to engage them in business— requires the creation and enforcement of consistent processes across an organization.

Facing increasing scrutiny and regulatory pressures, especially in the realm of customer risk profiling or know-your-customer (KYC) protocols, businesses are expected to have a robust and accurate risk profiling program. While developing an effective program, businesses often face several challenges, including aggregating multiple data sets and monitoring potential impacts, but there are technology solutions to help navigate these processes.

Organizations can use automated solutions not only to streamline processes like customer profile aggregation but also to create a user-friendly interface allowing communication between data sources and internal teams. The most effective approach to a risk profiling program is to consolidate customer risk profiling into a unified platform providing a comprehensive view of identity verification processes, as well as real-time and retroactive watch list screening data.

Knowing your customers is essential to your success, but profiling your customers’ risk potential is critical. Read CSI’s Sanctions Compliance: Implementing Customer Risk Profiling white paper to learn more about the challenges of implementing a holistic risk profiling program and find out how your business can streamline compliance with technology solutions.