LexisNexis® Risk Solutions today announced the launch of its enhanced due diligence (EDD) platform, LexisNexis® EDD Insight. The web-based research platform has been designed to help professionals who are responsible for financial crime compliance conduct effective investigations and due diligence, whilst reducing process inefficiencies.
The new product was developed after feedback from customers, across a variety of industries, revealed the negative impact lengthy and inefficient Know Your Customer (KYC) and EDD remediation processes are having on business productivity. These practices are in place to help organisations identify and manage potential financial crime risk, but can often be time-consuming and costly.
A new report by LexisNexis Risk Solutions, KYC & Sanctions Remediation: The Impact of Inefficiency, which includes feedback from over 150 financial services professionals found that disparate data systems, the time required to maintain an audit trail and the lack of a single customer risk view were all seen as root causes of inefficiency. Notably, the lack of a single customer risk view can be linked to negative business impacts such as higher costs of labour, delayed on-boarding and ultimately lost business.
LexisNexis® Risk Solutions developed EDD Insight to enhance the efficiency and effectiveness of due diligence processes, by providing a consolidated view of risk. This has been achieved through the amalgamation of three categories of critical due diligence data. UK public records and consumer data, business records containing ultimate beneficial owners, and global risk information including Politically Exposed Persons, sanctions and adverse media, are combined through proprietary linking technologies to help create a full picture of entities and the risks associated with them.
Paul Weathersby, Senior Director, Product Management, at LexisNexis® Risk Solutions said:
“Inefficient remediation processes are a significant challenge for both financial services and the broader industry. The prospect of losing business and potentially exposing the organisation to a greater level of financial crime risk is an even greater concern.
“Senior professionals in the sector are actively looking for ways in which due diligence processes can be improved to identify true risk, combat financial crime and prevent losses from occurring.
“We believe EDD Insight is uniquely positioned to support financial crime compliance professionals achieve these goals. The platform increases the effectiveness of their enhanced due diligence and remediation activities, whilst reducing operational inefficiencies and the subsequent negative effect they can have on their customers and ultimately their business.”