Know Your Customer Policy @ International Payment Provider

Consultancy and analytics delivers “Know Your Customer” satisfaction

Global payment provider prioritises high risk merchants to achieve low cost regulatory compliance

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This client is one of the world’s leading online, telephone and face-to-face payment providers.

In common with all financial institutions, an effective “Know Your Customer” policy was crucial to helping this global payments provider comply with regulatory guidance. It needed complete confidence in its entire customer book numbering hundreds of thousands of merchants around the world. And it needed to demonstrate that confidence to both regulatory authorities and shareholders.
Covering financial institutions in the UK and beyond, “Know Your Customer” (KYC) guidance requires firms to demonstrate a clear understanding of their client portfolio as part of anti money laundering legislation.

But customer due diligence on such a large number of entities is no small challenge. Conventional approaches to the verification and remediation of an entire customer book can be highly costly and time-consuming. And with a global client list, establishing company incorporation and linkage is a complex task.

With a clear Statement of Work confirmed, an initial consultancy engagement with Dun & Bradstreet’s content experts helped the provider make sense of its existing data, establish what was missing, and how best to interpret KYC legislation from a customer content perspective.
As the world’s leading source of business information and insight for over 150 years, it was a straightforward task to bring Dun & Bradstreet’s wealth of data analytics and insight services to bear on the provider’s customer book.

With such a huge volume of merchants, the customer also needed a solution able to support its specific risk-based approach. Ultimately, the task was to match the portfolio against Dun & Bradstreet’s database of more than 235 million global businesses – using the internationally recognised D&B DUNS number.

But to ensure the swiftest and most efficient programme, some detailed groundwork was needed first. This involved Dun & Bradstreet’s consultants working with the provider to establish the institution’s own risk parameters.

The project began by establishing and verifying those entities that posed minimal risk: charities, firms with multiple shareholders under a 25% ownership threshold, organisations regulated by the FCA or those listed on global stock exchanges.

“We chose Dun & Bradstreet because they acted like a partner every step of the way, in a professional manner and despite the constant change in our organisation.”
Project Programme Manager

Dun & Bradstreet was then able to quickly identify the higher risk businesses where detailed analysis and matching would be needed, including entities with parents in high risk countries or those where it was harder to establish beneficial ownership.

Attention was then focused here: cross-matching the high risk merchants against the Dun & Bradstreet’s DUNS Number to uncover potential issues of beneficial ownership, the presence of politically exposed persons or simply whether they presented an unacceptably high risk according to the provider’s own rules and policies.

This ability to filter out and analyse high risk entities dramatically reduced the resource and financial burden of complying with KYC guidance.

Using the Dun & Bradstreet DUNS Number the provider easily matched the merchants in its customer book. Missing records were rapidly identified, and the data delivered. Also, by working towards a risk based approach and ensuring the verification information was correct, the bank was able to reduce the number of ‘false positives’ it had to manage and discount.

There were other significant wins. Data experts were able to use Dun & Bradstreet’s matching algorithms to improve match rates through key data interpretation. This contributed significantly to the speed and accuracy of the programme.

Ultimately, the sheer scale of the Dun & Bradstreet database meant the payment provider enjoyed a high “hit” rate on UK and global customers – regardless of the size of the entity.
It all added up to a smooth, cost effective transition: from little visibility into the customer book, to a completely transparent portfolio that demonstrates the very highest levels of customer due diligence and KYC intelligence.

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