AI Case Study

Holvi reduces time spent investigating false positives for customer risk using AI platform ComplyAdvantage

Holvi implemented the ComplyAdvantage platform to ensure it complied with EU anti-money laundering regulation and could continuously monitor the AML risk profiles of its clients as well as transactions, automating the detection of potential risks.

Industry

Financial Services

Banking

Project Overview

"By integrating the ComplyAdvantage flexible REST API with their banking platform, Holvi has automated the AML screening of clients at onboarding, returning checks in seconds and providing a seamless customer experience as well as reducing manual back-end compliance work. Clients are also automatically screened for
changes in risk periodically, tailored to Holvi’s risk appetite and triggering only relevant alerts. Holvi integrated automated sanctions screening of transactions, so payments could be delivered without delays and at scale, as the volume grew. Because all decisions are automatically documented with clear audit trails, internal audits and external audits by regulators can be carried out more efficiently."

Reported Results

"Holvi has cut the time they spend remediating false positives in half".

Technology

"ComplyAdvantage uses Artificial Intelligence, guided and quality assured by risk experts, to monitor tens of thousands of media sources to spot risks. We convert risk signals and unstructured information into a structured database of people and companies that pose potential financial crime risk."

Function

Risk

Audit

Background

"Holvi’s mission is to help entrepreneurs by providing a seamless user experience in online banking and business management... Implementing the EU’s 4th Money Laundering Directive (4MLD) would have required a lot of internal resources to manage... Faced with a rapid growth trajectory, Holvi’s’ current system was not fit to scale. With an ever-increasing volume of risk indicators and limited resources internally to monitor for changes, Holvi was struggling to keep the risk data up to date. The deadline for
4MLD was also quickly approaching, which increased the scope of screening required to include the coverage of domestic Politically Exposed Persons (PEPs). In addition to challenges with maintaining accurate risk data and screening clients at onboarding, Holvi found it difficult to monitor the changing risk profiles of their customers efficiently and regularly, in accordance with expectations laid out in 4MLD. Their existing manual monitoring process would not be sustainable to meet
the demands of their fast growth. They were also receiving large volume of false positives, as risk decisions taken at onboarding needed to be manually remediated again. They wanted a system which could not only automate ongoing monitoring and proactively alert the compliance team when relevant risks change, but one
which could safely and effectively whitelist entities once checked, to help reduce time consuming false alarms."

Benefits

Data

Structured and unstructured data; ComplyAdvantage's "risk database covers global sanctions, watchlists, foreign and domestic politically exposed persons (PEPs) & adverse media, and has been complemented by relevant internal and niche regional watch lists for Holvi".