Description and Benefits of using the RSKRater Web Application (“Tool”)
Your compliance partner for effective client risk assessments under the Financial Intelligence Act, Act no 13 of 2012, as amended
OVERVIEW
The Financial Intelligence Act, Act no 13 of 2012, as amended (
FIA
Financial Intelligence Act, Act No. 13 of 2012
) imposes certain compliance obligations on institutions qualifying as accountable institutions under the said law. One such obligation imposed on AIs, is to risk rate clients’ money-laundering, terrorist and proliferation financing (
/
/
PF
Proliferation Financing
) risk exposure and to apply a level of due diligence proportionate to such clients’ risk profiles.
Effective compliance processes require structured tools such as RSKRater.
RSKRater is a
SaaS
Software as a Service
platform with hosted access only, which implies that the application is entirely reliant on a web-based environment for user interaction, with a focus on centralised management, security, and convenience, although contingent upon a reliable internet connection and server uptime.
The RSKRater web application (RSKRater) is a risk scoring tool that assigns a risk score to a client in a weighted manner in consideration of pre-determined key risk indicators, measured in relation to prescribed risk factors.
PRIMARY OBJECTIVE
RSKRater aims to assist Accountable Institutions to discharge regulatory obligations under the
FIA
Financial Intelligence Act, Act No. 13 of 2012
, with respect to client risk assessments relating to
/
/
PF
Proliferation Financing
, adequately and more effectively, whilst ensuring data integrity and availability.
Benefits of RSKRater
RSKRater provides access to a standardized, explicable and defendable regulatory-compliant Client Risk Assessment (CRA) Tool that offers the following benefits:
Consistent Client Risk Profiling
- Enabling the development of comprehensive and standardised risk profiles for clients, ensuring alignment with accountable institutions’ institutional risk assessments and compliance with
FIA
Financial Intelligence Act, Act No. 13 of 2012
- Ability to categorise clients based on their //
PF
Proliferation Financing
PF
Proliferation Financing
- Providing an instant, holistic risk overview across the entire client-base of //
PF
Proliferation Financing
- Automated risk assessment (risk calibration) using predefined key risk indicators, in relation to prescribed factors, i.e. client type, nature and characteristics of products / services offered, geographic risk exposure and delivery channels deployed in soliciting business;
- Customizable risk factors, key risk indicators and weightings to align with specific
FIA
Financial Intelligence Act, Act No. 13 of 2012
- Access to specific data to assess dominant high, medium, low risk drivers in your institution (business).
Risk Scoring & Calibration
- Implementation of a flexible scoring model that assigns a risk score to a client relationship in a weighted manner;
- Ability to produce calibrated institutional risk scores by collation of client risk profiles;
- A risk-based approach strengthens compliance effectiveness and enables proactive risk management.
Alert Generation
- Ability to send reminders to entire user communities, such as assessors, approvers and reviewers, regarding deadlines, (e.g. timely prompts for periodic ongoing due diligence reviews becoming due, tailored to each client’s risk profile, as required by law);
- Automated alert system for triggering notifications based on predefined thresholds or events (e.g. prior to pre-purchased subscriptions running out on account of depleted credit).
- In respect of high-risk clients requiring approval from senior management.
Reporting Tool
- Enables generation of reports / outputs;
- Facilitates efficient, accurate, and effective compliance reporting to meet regulatory obligations;
- In the absence of an automated transaction monitoring system, it directs further analysis / investigation into high-risk client activities and/or transactions, to enable the detection of suspicious transactions or activities and to enhance the effective discharge of reporting obligations.
Dashboard and Analytics
- User-friendly dashboard displaying key risk indicators and holistic overview of client risk and compliance profiles;
- Visual analytics tools to identify trends and patterns in transaction and client risk data, grouped per customer type;
- Access to specific data to assess dominant high, medium, low risk drivers in your business; and
- Capability to export and save reports in PDF.
Centralized Client Risk Repository and Record Keeping
- All client risk profiles are stored in a centralised, secure repository accessible to subscribers, subject to agreed terms and conditions;
- Real-time updates ensure that information entered is immediately visible to authorised members of the user community;
- Implemented role-based access controls ensure that only authorised members of the user community can access, edit, view or approve specific cases, especially high-risk client profiles;
- Once a client risk assessment is saved as completed, it can no longer be edited. In this instance, a new risk assessment must be undertaken, but the information from the previous client risk assessment will be pre-populated and open for editing on the new risk assessment started. This ensures data integrity and availability.
System Users (User Community)
- Have administrative, assessor, approver and reviewer capturing capabilities;
- Ability to produce audit trails by which compliance can be tracked;
- The Administrator would typically be the person responsible for //
PF
Proliferation Financing
MMCP
Marlene Miller Compliance Practitioners
- Assessors would be staff that perform the client risk assessment.
- Reviewers could be compliance officers, independent reviewers or supervisory authorities granted access to the web application by the Administrator.
- Approvers would be senior management and/or the compliance officer responsible for approving high-risk client relationships and the like.
- Any or all of the above roles can be assigned to one person in a smaller institution (business).
Role-Based Access Control
- Customisable user roles and permissions are available to restrict access to sensitive data based on job function;
- Capability of providing audit trails for tracking user activity within the user system.
Scalability and Performance
- Can be adjusted to accommodate changing user demands or increased loads, offering scalability that might be harder to achieve with on-premises solutions.
- Supports real-time monitoring and timely automated alert generation.
Security and Data Privacy
- User data is stored on hosting servers with backup solutions to ensure data integrity and availability;
- Reasonable security measures are implemented to protect such data, but no data transmission over the internet can be guaranteed to be completely secure.
- Enables role-based access controls, multi-factor authentication, and audit trails to secure sensitive information.
Accountable Institutions do not have to manage the underlying infrastructure, updates, or software installations, reducing the information technology workload. Instead, they rely on the hosting service provider to handle these responsibilities.
Availability of technical support via multiple channels (email, phone, chat).
Regular updates and maintenance schedules to ensure system reliability.
Flexible Pricing
Offers scalable pricing options tailored to the size of your client base and budget considerations.
A once-off sign-on fee is applicable.
Upon sign-on, a suitable subscription package is purchased upfront. A package consists of a pre-determined number of client risk assessments (credits). Credit units are reduced with the conclusion of each client risk assessment completed.
One risk assessment must be completed per client relationship / engagement, taking into account information relating to the client itself, as well as to his/her/its related parties, including beneficial owners.
Client Risk Assessments are not static and must be refreshed from time to time.
