Sentinel Lite

Understanding The Risk Analysis

Sentinel Lite uses an AI model to perform a holistic risk assessment based on client data provided during onboarding. The process is designed to identify potential risks associated with Anti-Money Laundering (AML) regulations. Here’s a breakdown of how different risk levels are categorized.

Low Risk

Clients are categorized as low risk if their profile is transparent, consistent, and aligns with activities known to have minimal AML risk.

  • Clear Source of Funds: Legitimate and verifiable sources like standard employment income or a pension.
  • Low-Risk Jurisdiction: Client resides in and operates from a country with strong AML regulations (e.g., UK, EU member states).
  • Straightforward Activities: Business or occupation is in a low-risk sector (e.g., salaried employee, local retail).
  • Not a PEP: The client is not identified as a Politically Exposed Person (PEP).
Medium Risk

A medium risk rating is applied when a client's profile has some elements that require closer scrutiny, but do not immediately indicate high risk.

  • Complex Business Structure: Use of corporate vehicles or trusts where the ultimate beneficial owner isn't immediately clear.
  • Moderate-Risk Jurisdiction: Business dealings with countries that have less stringent AML controls.
  • Unusual Transaction Patterns: Initial data suggests financial activity that is slightly inconsistent with the client's profile, warranting a closer look.
High Risk

High-risk clients have profiles with significant risk factors that mandate Enhanced Due Diligence (EDD) to mitigate potential AML risks.

  • PEP Status: The client is confirmed as a Politically Exposed Person. This is a primary trigger for a high-risk rating.
  • High-Risk Jurisdiction: Client is from or has substantial links to a country on FATF's high-risk list or a known tax haven.
  • Obscure Funds/Wealth: Source of funds is unclear, complex, or originates from high-risk activities (e.g., unregulated crypto, shell corporations).
  • Sanctions Screening Match: A potential match is found on a sanctions list, which automatically triggers EDD.