3 Risk Scoring Model
As a part of regulations, every customer of the bank has to be reviewed by looking at the profile of the customer and risk score the customer to determine the risk the customer poses to the bank and to determine if the bank can do business with the customer. In addition to risk scoring the customer, bank regulations also require that the bank’s prospective customers are risk-scored during Onboarding.
The Oracle Financial Services Know Your Customer (OFS KYC) application comes with pre-build risk models to help banks meet the requirements of regulations. Globally accepted risk factors are made available in the pre-build models. Additionally, banks can add additional risk factors as a configuration activity.
The risk model and parameters are derived from the following regulatory guidelines adopted around the world:
- International Money Laundering Abatement and Anti-Terrorist Financing Act
- USA PATRIOT Act
- UK Proceeds of Crime Act 2002
- JMLSG Guidance
- Third European Money Laundering Directive.