A cloud-based AI platform assists compliance teams in identifying politically exposed persons (PEPs)

Summary:

The company’s integration of AML platform with deep learning models and neural networks enabled compliance teams to identify PEPs 300 times faster, resulting in a 55% reduction in investigation costs.

Client:

Mogo, a digital finance company in Canada, was established in 2003. It provides digital solutions to empower consumers in managing and overseeing their finances. With approximately 200 employees, Mogo operates from offices in Vancouver, Toronto, London, and Casablanca.

Problem Statement: 

Mogo faced challenges in properly identifying politically exposed persons (PEPs). Definitions of PEPs were too broad  and subject to change because of the lack of awareness among many individuals about their PEP status. These definitions include not only politicians and heads of international organizations but also their families and associates.

Mogo didn’t want to rely on outdated lists of PEPs, which made the identification process time-consuming and trustless. They were dissatisfied with their previous service provider, whose approach relied on outdated keyword matching, limited data, and extensive manual effort. The PEP coverage was incomplete and lacked the depth required to meet regulatory requirements. To address these challenges, Mogo decided to switch to an AI-powered screening and entity resolution platform.

Results: 

• Compliance teams identify PEPs 300 times faster, resulting in a 55% reduction in investigation costs.
• More accurate risk assessment results.
• Integration expanded to assess risks associated with trading products, incorporating regulator disciplinary actions and cease trade order lists from industry organizations.

AI Solution Overview:

Minerva is a cloud-based AI platform that enables accurate, and high-quality risk decision-making. By using DL models and neural networks to analyze billions of data points and sources in real-time across 147 languages, Minerva assists compliance teams in staying ahead of financial crime, preventing money laundering, and complying with government regulations. With advanced algorithms and a vast database of global PEPs, Minerva accurately reconciles PEPs within existing client bases. The AI platform complies with SOC 2, Type II, GDPR, PIPEDA, and CCPA standards.

References:

1. Minerva Named Top AI & Data Product in the 2024 Product Awards. https://www.gominerva.com/post/top-ai-data-product-in-the-2024-product-awards 
2. How MOGO stays ahead of PEPs by Leveraging Data & Advanced AI Models. https://www.gominerva.com/post/mogo-case-study 
3. 5 AI Case Studies in Finance. https://www.vktr.com/ai-disruption/5-ai-case-studies-in-finance/ 

Industry: Anti-Corruption Compliance

Vendor: Minerva

Client: Mogo

Publication Date: 2023