Product Risk Scoring

OmniEagle’s Product Risk Scoring feature enables your organization to proactively evaluate and rank the inherent AML risks associated with each of your financial products and services, leveraging industry best practices and a continuously updated knowledge base. This system empowers you to allocate compliance resources effectively, implement tailored controls, and minimize your exposure to money laundering and terrorist financing.

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Key Benefits

• Proactive Risk Mitigation: Identify potential AML vulnerabilities in your product portfolio before they are exploited, based on built-in industry best practices.
• Targeted Controls: Implement specific controls and monitoring procedures tailored to the unique risks of each product, guided by expert recommendations.
• Efficient Resource Allocation: Prioritize compliance efforts based on product risk, maximizing the impact of your AML program, with clear recommendations on resource allocation.
• Informed Product Development: Incorporate AML considerations into the design of new products and services from the outset, using OmniEagle’s risk scoring as a foundational element.

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Core Functionality

• Predefined Risk Framework with Expert-Driven Customization:

  • Leverage OmniEagle’s built-in risk framework, designed by AML experts and aligned with GWG and BaFin guidance. This framework provides a ready-to-use foundation for assessing the inherent AML risks associated with each product.
  • Adapt the pre-defined risk framework to reflect the specific characteristics of your products and services, ensuring a tailored and accurate risk assessment.

• Data-Driven Assessment:

  • Leverage internal data (e.g., transaction history, customer demographics) and external sources (e.g., regulatory guidance, industry reports) to inform the risk assessment process.

• AI/ML insights monitoring:

  • Benefit from an AI/ML enhanced scoring that utilizes insights in the product performance in the market and dynamically adjusts the Risk Scoring results.

• Automated Risk Scoring Engine:

  • Automatically calculate risk scores for each product based on the defined risk framework and data inputs.
  • Generate a risk matrix that visually represents the relative risk of different products.

• Tailored Monitoring Procedures:

  • Define specific monitoring procedures for each product based on its risk score, leveraging OmniEagle’s recommendations for best practices.
  • Configure automated alerts for transactions involving high-risk products, ensuring timely detection of suspicious activity.

• Documentation and Audit Trail:

  • Maintain a comprehensive record of the product risk assessment process, including data sources, risk factors, and scoring rationale.
  • Generate reports for internal and external audits, demonstrating a clear and auditable approach to product risk management.

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Use Cases

• New Product Development: Conduct a risk assessment for new products before launch to identify and mitigate potential AML vulnerabilities, incorporating expert-driven best practices.
• Periodic Risk Review: Regularly review the risk profiles of existing products to ensure ongoing compliance and adapt to changing threats, guided by OmniEagle’s up-to-date knowledge base.
• Resource Allocation: Allocate compliance resources based on product risk, prioritizing high-risk products for enhanced monitoring and oversight, with clear justification based on the expert-driven risk assessment.
• Audit Preparation: Demonstrate a proactive and risk-based approach to AML compliance during regulatory audits, backed by a well-documented and expert-informed risk assessment process.

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Regulatory Alignment

• GWG (German Anti-Money Laundering Act): The GwG requires obliged entities to assess and mitigate the risks of money laundering and terrorist financing. This feature helps you demonstrate compliance with this requirement by systematically assessing the risks of your products and services, leveraging OmniEagle’s embedded AML expertise.
• BaFin Guidance: Aligns with BaFin’s emphasis on a risk-based approach to AML compliance, ensuring that you allocate resources and implement controls commensurate with the level of risk, using a framework that reflects current regulatory expectations.