The consideration and fulfilment of the Compliance rules and regulations are a new challenge for the industry as expertise and intelligent software are absolutely necessary. Many Compliance rules result from Basel II and Sarbanes Oxley and therefore they also apply for factoring companies.

What does blacklist matching mean for you?

The zero-tolerance-policy of the USA regarding Blacklist Non-Compliance, i.e. the non-observance of related rules and regulation by financial institutions, are also for factors a big challenge. The dynamic development and the increasing number of corresponding rules and regulations force financial institutions to comprehensive control mechanisms within their data quality management in order to detect money launderings, financings of acts of terrorism and other illegal activities. A non-observance of Compliance causes penalties, slur on reputation or even imprisonment.

The so-called Blacklist matching is an important part of Compliance: It is the data reconciliation of governmental “black lists” with the own customer data. The reconciliation requires intelligent software.

How does FACT.pilot fulfil the comprehensive compliance demands for blacklist matching?

fidis has integrated into FACT.pilot a tool for the blacklist matching and therefore fulfils all Compliance demands. The own customer database is reconciled with the black lists and analysed on an advanced technical level.

The blacklist data are mostly patchy and rarely provided with addresses. Therefore, the software does not only identify patterns, filling levels, values and keys but also language conventions, name contractions and phonetic distinctions. In addition, nick names and non-Latin characters (e.g. like Arabic or Cyrillic) are reconciled and detected. Also regular transactions, like bank transfers for instance, are automatically subject to cross-checks.