3.2.3 KYC Risk Scores for Rule-Based and Algorithm-Based Models

All customers who are identified as part of the identification of customer processes are processed through the Rule-based Model. A customer would get a risk score for this model only if the customer meets one or more rules.

After the customers are identified through the pre-filtering assessments and their interested parties, the system proceeds with calculating the risk score of the customer through the Algorithm-based model. The following factors are considered for risk scoring:

• Customer Attributes
• Customer Geography Attributes
• Customer Account Attributes
• Watch List Scan

Note:

All customers who are processed through the Rule-based model are also considered for the Algorithm-based risk model to get the risk score on the customer attributes. The KYC risk score of the customer is the maximum of the Rule-based and Algorithm-based models.