H-DSE The data filtering engine by HIDLO
To operate in the financial system, each financial institution has to comply with national and international regulations such as the Extraterritoriality of US laws (Foreign Corrupt Practices Act (FCPA) of 1977) and the European Union Fourth Anti-Money Laundering Directive (Directive 2015/849 of the European Parliament and of the Council of 20 May 2015).
So each institution should set up a Compliance Department that will enforce all necessary actions and processes to get the identity, credentials and good standing of their customers, prospects, or business partners.
Hidlo Data Screening Engine (H-DSE) screens customer data and provide only positive and relevant alerts. Each alert will be reviewed through a case management tool for a deeper analysis and potential transfer towards the local regulation bodies
H-DSE provides alerts with a lower relevancy threshold as long as their rejection motives.
H-DSE screens customer data against records in the PEP, Sanction and Negative News lists
In particular, under the 4th Directive, the duty to identify PEPs applies not only to customers but also to their beneficial owners.
Besides, customer screening must be carried out against both domestic and foreign PEP and RCA records belonging to PEP/RCA aggregated lists.
Principle of operation
Customer data will be sent to H-DSE either by batch for periodic screenings or by API for real-time requests such as onboarding or KYC.
Each customer data processed into H-DSE provide alerts based on names homonymies, closeness to other pieces of informations such as DOB and POB, job functions, and other parameters.
H-DSE has 2 levels of analysis:
• A low level giving just the presence of alerts.
• A detailed level with all elements for the Compliance Officer to identify the reason for each alert and some materials to take the final decision.
The ListGenerator module allows to upload and to update the Hidlo's database containing the PEP list and sanctions lists from the files sent by the lists suppliers.
Moreover, an interface program allows to upload the alerts generated by H-DSE into a target case management tool.