Lowering risk and creating opportunity

Knowing the nature and purpose of the relationship helps manage risk and identify sales and service opportunities

Connecting with customers

Customer profiling helps understand how your customer will be using your products and services and helps manage risk, improve service and increase cross sell opportunities

Knowing the nature and purpose of the customers relationship enables detection of patterns of behaviour that are inconsistent with your knowledge of your customer. This could indicate money laundering risk, fraud risk or cross sell opportunities.

At the beginning of a new relationship is the best time to gain an understanding of what your customer is trying to achieve by using your products and services, how much business is expected, and how regular the interactions will be.

The collection of meaningful nature and purpose information from a customer is vital for conducting effective transaction monitoring and identifying suspicious activity. 

If there is a material change in the nature and purpose of the relationship enhanced due diligence is required. 

The level of nature and purpose information you could collect will vary depending on the complexity of the customer.

The following are some examples of nature and purpose information you should consider when establishing a business relationship with a new customer. 

Why has the customer decided to commence a relationship?

  • What types of transactions does the customer expect to conduct?
  • What is the customers expected value, volume and velocity of transactions
  • What is the customer occupation or industry
  • Does the customer expect to receive transactions from 3rd parties
  • Does the customer expect to send or receive overseas?

Customer Risk Profiling is included in Avid AML's customer onboarding platform and makes it easy for compliance managers to understand potential risk and assign a customer risk rating.

Nature and Purpose information enables a better understanding of the customer and is an easy referral point should there be suspicious activity making it easier for compliance officers to process suspicious activity cases and minimise risk.

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