Our view is that most FinCrime risk management deficiencies in the industry are driven by the inability of financial institutions to factually assess and quantify FinCrime risk. The EFI provides a viable solution by offering a clear, objective and data-driven assessment of FinCrime risk. The platform also provides transparency throughout the banking community, so as to enable financial institutions to easily understand and manage FinCrime risk. The EFI is a model of risk assessment that pragmatically builds on the existing system, but also seeks to address its shortcomings. The combination of the Wolfsberg DDQ responses and additional data enables the identification of risks that may have been otherwise overlooked by typical due diligence practices. As a risk-based approach must be data-driven, the EFI model utilises an extensive data set that goes beyond the current compliance approaches. The model uses a combination of data from the public domain and internal data such as transactions, customers, and control process outcomes. The EFI also utilises supervised machine learning to enable ongoing refinement as more data is available to the platform.
