The single user version of RV1 may be used in smaller banks where there are relatively few customers and new accounts to be opened. The 11 questions may be incorporated into the account opening form or into a customer relationship management survey. When the form is taken for processing, the replies may then be extracted manually and the on-screen form completed. The response may then be copied from the screen to the customer's papers.

In larger businesses, the network version may be incorporated into account opening processes and CRM surveys.

Risk Values may be used as a supplement to transaction monitoring, identifying those customers whose accounts should be subject to scrutiny.

Risk Values may be used at the time the account is opened or in subsequent CRM surveys (so long as the answers are attributable to a particular customer).

Risk Values may be used in small financial institutions where computerised transaction monitoring is unaffordable. By identifying the accounts to which special care should be applied, manual monitoring does not need to be taken across the entire customer base with all the cost and uncertainty that that entails.

Non-Face to Face Business.

See Remote Operations below

Transaction monitoring can be useful - but mostly it will result in very few matches despite a significant customer base over a large period. The expense of monitoring something for which the most common result is "nothing to report" means that the cost per event is markedly higher than in, for example, banks where the number of transactions and the probability of abuse is higher. For this reason, some businesses may elect to monitor transactions based solely on the receipt of premiums. However, the information that will identify the abuser is more likely to be produced at the point of sale. It is at this time that Risk Values will prove itself.

Non-Face to Face Business.

See Remote Operations below

Brokers cannot be expected to undertake, maintain confidential and pass to the insurer the Risk Values analysis and the data should therefore be processed by the company which carries the risk. The 11 questions may be incorporated into the application form or a CRM survey accompanying the application.

Insurance companies may wish to include Risk Values as a part of the process for approval of introducing brokers.

Direct business: Face to Face

High Value business is often conducted face to face. In these cases, there is a likelihood that your risk management department is already undertaking identification and other know-your-customer procedures. The proposal forms for high value commercial business may not be suitable for Risk Values. However, if your risk management department is already undertaking reviews of the participators in a business then it the Risk Values questions may be embedded in the questionnaires sent to them.

Non-Face to Face Business.

See Remote Operations below

Risks for stockbrokers go beyond those that affect other financial services businesses - a client may attempt to sell stocks that he does not own or cannot deliver. In many countries, selling short is either a criminal or regulatory offence - sometimes both - and the broker may become implicated in the conduct. Risk Values identifies those who display a propensity to abuse the relationship and this includes using the institution, in this case the broker, to commit an offence.

- Law firms
- Accounting practices
- Auctioneers
- Real Estate Agents
- Management and other consultancy firms

In current parlance, professional practices are "gatekeepers."

Because of this, regulators are increasing the pressure on them to make suspicious transaction reports. Some are resisting - and some legal professional bodies have taken their governments to court claiming that their client's right to confidentiality overrides all attempts to force disclosure. It is unlikely that this will achieve widespread success.

As a result, professional practices are finding themselves subject to KYC requirements that are the same as or very similar to large financial institutions. Transaction monitoring will probably be unsuitable for many firms but there is nevertheless a need to be able to identify suspicious behaviour and Risk Values is therefore a more suitable tool for such practices than transaction monitoring.

In some countries, law firms are already required to make suspicious transaction reports - and the enlargement of the application of certain know your customer procedures in the USA as a result of legislation passed in late 2001 will make more law firms subject to that requirement.

Risk Values can operate in such a business at a very low cost per transaction. If the business operates a system of accounts, which is often advisable, then Risk Values can be applied at the time the account is opened. When coupled with inexpensive identity checks, Risk Values can offer a unique level of comfort in a high risk (for money laundering) but low margin business.

In the case of internet applications, the network version can be incorporated into the on-line application process. The responses can be automatically extracted and processed with the output taken into the usual reporting channels. In the case of larger banks, the network version will be more suitable: the automatic extraction of data from application forms and the passing of the results to a central risk management or compliance unit will result in as little manual processing as possible and the delivery of real time Risk Values information to the risk management and compliance teams at a cost per customer which, in many banks, will be too small to calculate.

Network Version

Stand Alone Version