iDenfy, a Lithuania-based identity verification and fraud prevention software provider, announced the launch of its new AI-powered customer risk assessment solution. This new easy-to-use platform feature is specifically designed to empower businesses with a comprehensive, automated, and customizable approach to risk management for both Know Your Customer (KYC) and Know Your Business (KYB) compliance.

Risk assessment enables companies to determine the risk levels of an onboarded company or individual. The compliance team utilizes an automated risk assessment service to create custom rules, used for determining overall risk. This is especially important for high-risk industries and overall all businesses that are dealing with a high volume of onboarded entities and want to ensure Anti-Money Laundering (AML) compliance using automation.

“Criminals know how to manipulate the marketplace and launder money, find new ways for tax evasion, or just simply stay ahead of regulators,” said Domantas Ciulde. iDenfy’s tool was built on specific requests from partners who wanted an automated solution on the same dashboard for a more flexible, quicker, and adapted approach to various compliance-related tasks.

iDenfy's Customer Risk Assessment solution enables businesses to streamline their risk management processes effectively. The new solution allows users to enter risk assessment names and descriptions on iDenfy’s dashboard, create various risk channels (such as geographical, product, customer, and delivery), and customize automation rules based on specific customer risk factors (such as their identity data, address info, and other points, including countries of incorporation, Politically Exposed Person (PEP) status, etc.). According to Domantas Ciulde, this is particularly valuable for internal compliance teams who can assign countries according to specific risk levels and tailor the users’ risk profiles to precise requirements based on the company’s internal risk management program. 

Even non-regulated entities can leverage this tool to effortlessly and efficiently assess various red flags, as iDenfy new risk assessment solution can be beneficial for evaluating potential partners and third parties prior to their onboarding and throughout the whole business relationship for easier ongoing monitoring.

With iDenfy's customizable risk assessment solution, businesses can establish their own verification rules and maintain historical data records using the same updated dashboard. This enables the performance of KYC and KYB risk assessments in compliance with legal standards and internal protocols tailored to various jurisdictions. As a result, by replacing traditional time-consuming manual calculations and possible mistakes with an automated solution, companies can enhance accuracy and efficiency while reducing both the time and costs associated with traditional spreadsheet-based risk assessment strategies.

“Our new Customer Risk Assessment system was developed to provide exceptional efficiency and precision for companies following the risk-based approach and all of those who want to operate confidently in even the most difficult industries,” explained Domantas Ciulde, the CEO of iDenfy.

It’s worth mentioning that money laundering is common among businesses that operate in markets with significant high-risk factors and loss possibilities, such as trading, gambling, crypto, and others. Using tools like iDenfy’s Risk Assessment, compliance teams can follow due diligence procedures and save time for customers who are not followed by these niches and are frequently targeted by scammers.