ASK MAT - Should an AML screening system automatically support name transposition

ASK MAT –

• Should an AML screening system automatically support name transposition

MAT SAYS -

• Yes, the AML screening system automatically supports name transposition. Otherwise, you will be doing it manually, and this creates workload and opportunity for error
• In the context of AML (Anti-Money Laundering and financial crime) and CDD (Customer Due Diligence) risk screening systems, name transposition refers to the ability of these systems to recognise and match names even when their order is reversed or altered.
• Automatically supporting name transposition in AML and CDD risk screening systems is essential for maintaining the integrity and accuracy of the screening process, ultimately helping to prevent financial crimes and ensure regulatory compliance.

Automatically supporting name transposition capability is crucial for several reasons:

1. Enhanced Matching Accuracy:

1. Names can be recorded in various formats across different databases. For example, “John Doe” might appear as “Doe John” in another system.
2. Name transposition ensures that all possible variations are considered, improving the accuracy of matches.

2. Cultural Sensitivity:

1. Different cultures have different naming conventions.
2. In some cultures, the family name comes first, while in others, it comes last.
3. Name transposition helps accommodate these variations, ensuring comprehensive screening.

3. Error Mitigation:

1. Human errors in data entry can lead to transposed names.
2. By supporting name transposition, systems can still identify potential matches despite these errors.

4. Regulatory Compliance:

1. Screening all name variations helps financial institutions comply with global AML regulations, reducing the risk of legal and monetary penalties.

5. Effective Risk Management:

1. Comprehensive name screening, including transpositions, helps identify high-risk individuals and entities more effectively, enhancing the overall risk mitigation process.

COMSURE SCREENING SOLUTION

• Comsure has an AML screening system that supports automatic name transposition, and it can be run every night and embedded into your Customer Risk Assessments [CRA].

WANT TO KNOW MORE – CALL MATHEW

Mathew Beale - Chartered FCSI

Principal & Director - Comsure Compliance Limited, Comsure Technology Limited, Comsure Mauritius (the "Comsure Group of Companies")

mathewbeale@comsuregroup.com

T (Jersey) +44 1534 733-588 /+44 7797 747-490

T (Mauritius) +230 214-6487 / +230 5717-6907

Information Source: 

1. Understanding AML Name Screening: Processes and Best Practices. https://ripjar.com/blog/understanding-aml-name-screening-processes-and-best-practices/.
2. Name Screening and Blacklist Filtering in AML Compliance - Fineksus. https://fineksus.com/name-screening-and-blacklist-filtering-in-aml-compliance/.
3. What Is AML Name Screening? What Are The Techniques And Best Practices .... https://www.zigram.tech/articles/what-is-aml-name-screening/.
4. The Critical Role of Name Screening in AML and KYC Compliance. https://complywiser.com/blog/post/the-critical-role-of-name-screening-in-aml-and-kyc-compliance.
5. What Is AML Name Screening? What Are The Techniques And Best Practices .... https://www.zigram.tech/articles/what-is-aml-name-screening/.
6. Name Screening and Blacklist Filtering in AML Compliance - Fineksus. https://fineksus.com/name-screening-and-blacklist-filtering-in-aml-compliance/.