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Roadmap to next-generation KYC

Episode
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December 3, 2021

Moody’s Analytics KYC and compliance capabilities are expanding, delivering innovation and efficiencies to customers.

On 3 December 2021 Moody’s Analytics (MA) announced its acquisition of PassFort and entered into a definitive agreement to acquire kompany, subject to regulatory approval.  

This latest expansion of MA complements its strategic investment in the compliance and KYC (know your customer) space over the past five years, which has included the acquisitions of Bureau van Dijk (2017), RDC (2020), Acquire Media (2020), and Bogard (2021). Moody’s Analytics brings together best-in-class-data, adverse media, source documentation and workflow tools to enable customers to move the needle on KYC. And, as this latest expansion shows, MA continues to invest in the next generation of third-party regulation and compliance technology.  

Working towards KYC without silos

The KYC and RegTech markets are highly fragmented, preventing customers from mitigating risk effectively. Our customers say they average 10-plus vendors in their end-to-end KYC programs. This creates significant manual work for analysts and leads to gaps in coverage that bad actors can utilize to evade detection.  

MA’s KYC offering includes the award-winning database Orbis, which contains information on more than 400 million companies and entities worldwide. Grid is our industry-leading curated risk intelligence database of sanctions, watchlists, PEPs and adverse media. Together, they allow customers to assess who they’re doing business with and weigh the associated risks. And to fully address fincrime risk assessment in all its forms, MA plans to deliver more.  

PassFort’s Smart Policy technology and LifeCyle platform digitally transform KYC and anti-money laundering (AML) workflows. Together with direct access to kompany’s verified primary source documentation, which carries transparent audit trails and time stamps, MA’s KYC capabilities now address more compliance challenges, helping to break down silos.  

Journey to perpetual KYC

These acquisitions will take us a step closer to perpetual KYC (pKYC). While our existing solutions track entity risk information and emerging risks, a more holistic approach is needed to deliver pKYC.  

PassFort’s Smart Policy solution will be able to draw on kompany’s unique notification capabilities and live links to 200-plus registries to calculate a new and updated risk score for any counterparty in seconds. Any change in risk will be handled by automated workflows, with the analyst alerted, should human intervention be needed at any stage.

With risk scores constantly updated, you can monitor your risk exposure in real time, enabling you to make the optimal choices for your organization.

A complete, integrated view of risk

These latest acquisitions are part of MA’s vision to become its customers’ single integrated risk assessment partner, empowering them to make better, faster risk decisions. Rob Fauber, CEO of Moody’s Corporation, spoke in more detail about this vision in his Q3 2021 Investor Presentation.  

If you have any questions about MA’s solutions or would like to discuss KYC for your business, get in touch via our contact form.

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