1.2 Configuring Oracle Financial Services Customer Screening for different scenarios

As previously mentioned, Oracle Financial Services Customer Screening includes clusters and matching rules that are suited to various screening requirements. Tuning Oracle Financial Services Customer Screening to match your policies should be undertaken carefully and under the supervision of a risk and compliance expert, with knowledge of your business requirements and the relevant legislation.

The following general points may be useful when tuning the behavior of Oracle Financial Services Customer Screening:

• Some organizations use a zero-tolerance policy for individual name matches. Such a policy typically requires that all potential name matches must be manually reviewed, irrespective of the rest of the data associated with the record. If such a policy is in place, you should consider the following actions:
  • Disable all the elimination rules in the individual matching processors. If these rules are enabled, you run the risk of preventing close name matches from being detected by the remaining match rules.
  • Enable the conflict rules in the individual matching processors. These rules allow you to detect and manually review close name matches whose supporting information conflicts with the watch list records.

    Note:

    The conflict rules raise possible matches when the individual name appears to match a given watch list record, but the supporting data (such as date of birth or nationality) is in conflict.
  • If the name only clusters are enabled, the Name and Country and Name and YOB clusters are redundant and therefore can be disabled for PEP and EDD screening. They are disabled by default for Sanctions screening.
• Country prohibition screening is enabled by default for Sanctions screening. To screen for prohibited countries during PEP and EDD screening, enable the relevant country prohibition clusters and match rules:
  • The clusters used for country prohibitions in entity screening are the Registration Country cluster and the Operating Country cluster.
  • The match rules used for country prohibitions in entity screening are the Country Prohibition – Registration Country and the Country Prohibition – Operating Country match rules.
  • The clusters used for country prohibitions in individual screening are the Nationality Prohibition and the Residency Prohibition clusters.
  • The match rules used for country prohibitions in individual screening are the Country Prohibition – Nationality and the Country Prohibition – Residency match rules.
• In general, using a loose clustering strategy will result in relatively few clusters, each containing many records. This reduces the potential for missing true matches and increases the chance of false positives. It is also expensive in terms of processing requirements, as every record in the cluster must be directly compared with every other record in that cluster.
• Conversely, a tight clustering strategy will result in a relatively large number of clusters, each containing fewer records. This increases the potential for missing true matches and decreases the chance of false positives. It also reduces the overall cost of the processing requirements, as relatively few direct comparisons are required.