Admin User Setup Guide
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      Default Compliance Settings

      Follow these default settings to optimize compliance and enhance risk management on your iComplyKYC platform.

      Default Settings for Risk Screening Profiles

      A Risk Screening Profile defines the parameters for monitoring individuals and entities against sanctions lists, PEP databases, and adverse media. Follow this step-by-step video guide to set up your Risk Screening Profile.

      1. Optional Fields: Add Date of Birth/Incorporation and Add Country

      • Leave these fields optional during the initial setup.
      • Why? Leaving these fields optional allows for a broader search during the initial screening phase. This ensures that all possible matches are included, even if the exact date or country is not provided. The platform searches across all jurisdictions, reducing the chance of missing critical information tied to a different country or year.

      2. Fuzziness Levels: Set to 30%

      •  Set the name-matching fuzziness to 30%.
      • Why? A 30% fuzziness level strikes a balance between identifying matches with minor spelling variations (e.g., "Jon Smith" vs. "John Smyth") and avoiding an overwhelming number of false positives.

      3. Screening Filters: Turn Off Apply by Nationality, Jurisdiction, Risk Level, and KYC Status

      •  Keep these filters off to screen all individuals/entities comprehensively.
      • Why? Turning on these filters limits the scope of screening and may exclude potential risks. For instance:
        • A client with a nationality flagged for low risk might still appear in adverse media.
        • Jurisdictions with unknown risks might need additional scrutiny.

      4. Enable Ongoing Monitoring

      • Turn on ongoing monitoring for all cases.
      • Why? This ensures that new matches, sanctions updates, or adverse media alerts are detected after the initial screening. For example, a client cleared today could appear on a sanctions list tomorrow.

      5. Automated Action: If No Matches Are Found, Set the Case Status to Closed

      • Enable automation to close cases automatically when no matches are found.
      • Why? This reduces manual review efforts and allows the team to focus on cases requiring attention. For example, if a corporate entity undergoes screening with no adverse findings, the system can close the case without manual intervention, streamlining your workflow.

      Tip: Create separate profiles for high-risk regions or industries to tailor your monitoring.

      Default Settings for Risk Levels

      Establishing clear Risk Levels is essential for categorizing clients based on their potential compliance risk. In the system, there are options for 1-3, 1-4, and 1-5 risk levels, with the recommended setting being 1-5. This provides a broader and more flexible classification system that allows for more precise risk categorization. The following guide outlines the names of each risk level, which can be customized based on your organization's needs.

      Steps to Set Up Risk Levels

      1. Select the 1-5 option from the risk level configuration settings.
      2. Define the names for each of the 5 risk levels.
        The recommended names for each level are:

      Default Settings for Risk Scoring Rules

      Risk scoring is a critical component of the iComplyKYC platform, essential for prioritizing cases based on their potential compliance risk. Configuring effective scoring rules ensures that high-risk individuals or entities are flagged appropriately for further review, enabling your compliance team to focus on the most significant threats.

      1. Add Rules for High-Risk and Medium-Risk Countries

      • Recommendation:
        • Assign a higher score to individuals or entities associated with high-risk countries.
        • Assign a moderate score to those linked to medium-risk countries.
      • Why?
        This differentiation reflects the varying levels of regulatory and geopolitical risks. For example:
        • A client from a high-risk jurisdiction (e.g., a country under heavy sanctions or known for money laundering activities) should receive a higher risk score to trigger enhanced due diligence.
        • A medium-risk jurisdiction might warrant standard monitoring but still needs attention due to moderate exposure to risk.

      2. Add Rules for Risk Types Such as PEPs

      • Recommendation:
        • Assign a significant score to individuals identified as Politically Exposed Persons.
      • Why?
        PEPs inherently carry a higher risk due to their influence and access to public funds. For example, a high-ranking government official flagged as a PEP should have a score that prioritizes their case for immediate review.

      3. Add Rules for KYC Status: Escalated

      • Recommendation:
        • Assign a higher score to individuals or entities with a KYC status set to Escalated.
      • Why?
        Escalated KYC status indicates unresolved concerns or flagged discrepancies during onboarding or monitoring. For instance, a corporate client with incomplete beneficial ownership details marked as "Escalated" should be prioritized for further review and verification.

      Example Scoring Rule Weights with Risk Assignments

      To classify risks effectively, scores are assigned based on pre-defined rules. Below are suggested scoring ranges and examples of how risk assignments could work when divided into five levels.

       

      Risk Levels and Scoring Ranges

      1. Low Risk: 0–20
      2. Medium-Low Risk: 21–40
      3. Medium Risk: 41–60
      4. Medium-High Risk: 61–80
      5. High Risk: 81– ∞

      Scoring Examples

      1. High-Risk Country

      • Rule: Assign +50 points to individuals or entities linked to high-risk jurisdictions.
      • Example:
        A client from a heavily sanctioned country like North Korea would automatically score 50 points, placing them in the Medium-Low Risk range (21–40).
        • Score: 50 (Medium-Low Risk).

      2. Medium-Risk Country

      • Rule: Assign +30 points to individuals or entities linked to medium-risk jurisdictions.
      • Example:
        A client from a jurisdiction like Turkey (considered medium risk) would score 30 points, placing them in the Low-Risk category (0–20).
        • Score: 30 (Low Risk).

      3. PEP Status

      • Rule: Assign +40 points for individuals identified as Politically Exposed Persons.
      • Example:
        A high-ranking government official flagged as a PEP from a medium-risk country may receive 40 points, pushing the total score into Medium Risk (41–60) when combined with other factors.
        • Score: 40 (Medium-Low Risk).

      4. KYC Status: Escalated

      • Rule: Assign +60 points for cases with an escalated KYC status.
      • Example:
        A legal entity with unresolved issues in beneficial ownership documentation could score 60 points, landing in the Medium-High Risk category (61–80).
        • Score: 60 (Medium-High Risk).

      5. Combined Scenario

      • Scenario:
        • The client is flagged as a PEP (+40 points).
        • The client resides in a high-risk country (+50 points).
        • The client has an escalated KYC status (+60 points).
      • Total Score: 150 points
      • Risk Level: High Risk (81–∞)
        • This total score places the case into the High-Risk category, which requires immediate attention and enhanced due diligence. 

      Summary of Default Risk Levels and Actions