From 2007 to 2015, Danske Bank was involved in money laundering of over €200 billion; however, when confronted, it was very hard to link all the documents found as evidence to connect the dots. The rabbit hole doesn’t end with just Danske Bank. But, Wirecard Fraud, the 1MDB Scandal, the HSBC Money Laundering Case, and Swedbank and SEB Scandals all were linked to one loophole: the inability to match all the documents leading to a conclusion.
When a deep investigation was done to identify why it happened? All the dots merged at a common checkpoint, which is bad data-keeping. More than 80% of investigators complained that they are overwhelmed by the way the data is kept. Due to this, it becomes nearly impossible to analyze the data manually to aid in the investigation and come to a conclusion when such events happen. They feel that a link should be established between technology and the human element, and that’s where the role of data matching begins.
What is Data Matching?
It is the process of comparing and linking the data that matches with the same identity. Due to this process, it is possible to overcome data duplication and undertake better decision-making initiatives.
What If you Do Not Have Better Data Matching Software For Countering AML?
1. Reduced Team Efficiency
Imagine, as an AML squad, you have to rigorously go through the same data over and over again, and it is giving you false signals in the end. It would amount to a loss of time and energy; why? You would be investigating something which would end up as clean in the end. Due to these false positives, oftentimes, the agents working on apprehending the culprits give up midway, or they have an interpretation based on their past experiences that this, too, shall be a fluke in the end. Hence, they might not give their 100% to the job.
2. Regulatory Vulnerability
Incomplete data can also put an organization on the frontline of abuse because they do not have all the updated data due to technological bottlenecks. For this reason, even though they are not at fault, they are still penalized for compliance due to blind spots left by inadequate data-keeping tools.
3. Higher Costs
When you have incomplete or erroneous data, it will be mandatory for you as an organization to rigorously conduct a thorough check and bring all the data into account. It would amount to spending a lot of money on jobs that were not needed in the first place if done properly.
4. Risk Management
Risk management goes for a toss because there’s no proper data that can aid in completing the compliances and checking for loopholes, if any.
How Accurate Data Matching Turns the Tide?
1. Better Detection Capabilities
When you have all the data intact and in the right order, you can program your algorithm effectively and allow it to pinpoint any unwanted behaviour in its operation. This will not only shorten the time but also make discovery seamless and efficient.
2. Optimum Client Onboarding
With better data-matching software, you can seamlessly ensure better client boarding right from the very beginning. Why? Because the data matching software will function to identify all the grey clients who wish to get on board. They can instantly flag them and save your organization from any kind of hiccups at all.
3. Better Brand Management
Imagine getting stuck with a client who has a bad brand reputation. Due to their loopholes, your organization will suffer as well because you are doing business with them. However, when you have an accurate data matching system, you can quickly identify those clients who are involved in AML, and you can report to authorities straightway and even build trust/goodwill in the market.
4. Proactive Risk Management
The last thing that you would want for your organization would be to get involved in AML crimes that you have not committed at all. Why? Because the fines are hefty and it would also ruin your reputation in the market. However, when you have data-matching software, you can set up a unified and standardized data set. Due to that, you can easily identify even weak risk signals, which wouldn’t have been possible in the absence of data-matching AML systems.
Conclusion
Due to the use of digital currencies, it is very important that, as an organization, you are more than ready to defy the odds and find weak links in your record-keeping as they happen. With an effective and robust data matching engine, you can eliminate all the risks right when they appear, protecting your organization from any kind of catastrophic events. Solutions like MatchX exemplify how advanced technology can turn data into a competitive advantage, empowering institutions to stay resilient in the face of emerging challenges. Learn more about MatchX and how it can enhance your fraud prevention strategy by visiting. Take the first step toward data-driven success. Contact us or Visit us for a closer look at how VE3’s solutions can drive your organization’s success. Let’s shape the future together.