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In today’s interconnected world, where identity verification and compliance monitoring are more critical than ever, organizations must adopt cutting-edge tools to mitigate risks and adhere to regulations. For this reason, tools like the IRBIS Compliance Screening API family have become indispensable in investigations. These APIs provide seamless access to millions of records across various databases, offering actionable insights for due diligence.
This article examines a real-world case where IRBIS APIs, including SSN Trace, National Criminal Screening, and Watchlists & Politically Exposed Persons Screening, successfully unraveled a complex financial fraud network. Through this case study, you will see how IRBIS APIs streamline investigations, ensure compliance, and empower organizations to make informed decisions.
Case Study: Unmasking a Financial Fraud Network
The Problem
A multinational financial institution faced significant challenges while onboarding a high-net-worth individual (HNWI) for an investment product. Although the individual initially appeared legitimate, routine due diligence raised red flags concerning their identity, financial history, and connections to politically exposed persons (PEPs). Thus, the institution required a deeper investigation to verify personal data, trace criminal records, and ensure compliance with AML (Anti-Money Laundering) regulations.
However, verifying data across multiple US states, counties, and international databases proved daunting. At this point, the organization turned to IRBIS APIs to conduct a thorough investigation.
Step 1: Using SSN Trace for Identity Verification
First and foremost, the investigation relied on the SSN Trace API to validate the individual’s identity and detect inconsistencies in their demographic data.
- Identity Verification: By cross-referencing the SSN with the individual’s name and address history, the API confirmed the validity of the personal details provided.
- Risk Assessment: The API flagged jurisdictions where further checks were necessary, helping the investigators focus their efforts.
- Data Accuracy: Automated retrieval of historical records reduced manual errors, improving the overall quality of the investigation.
Results
Interestingly, the SSN trace revealed three previously undeclared addresses linked to the individual. Not only were these addresses suspicious, but two of them were associated with prior cases of identity theft and credit fraud. This discovery raised immediate concerns about the individual’s authenticity.
Step 2: National Criminal Screening for Legal Records
After identifying the key jurisdictions from the SSN Trace, the investigators turned to the National Criminal Screening API to access millions of records from federal, state, and county databases.
- Comprehensive Database Coverage: The API pulled legal records from individual counties, US states, and federal sources, ensuring a complete view of the individual’s criminal history.
- Historical Records: It included open court cases, arrest records, and parole data, enabling investigators to identify potential risk factors.
- Legal Compliance: By adhering to local, state, and federal regulations, the API provided reliable data for the investigation.
Results
The criminal screening revealed a misdemeanor conviction for falsifying financial documents, as well as a pending case involving embezzlement. These findings not only confirmed the institution’s initial concerns but also highlighted the need for stricter compliance protocols.
Step 3: Watchlists and Politically Exposed Persons (PEP) Screening
Subsequently, investigators used the Watchlists and Politically Exposed Persons Screening API to identify international risks and regulatory compliance issues.
a) Global Watchlists & Sanction Screening
This endpoint checked over 6,000 global data sources, including sanctions lists, terrorism watchlists, and public records. As a result, the investigators identified potential risks related to the individual’s associations with entities flagged for financial crime.
b) Politically Exposed Persons Screening
The PEP screening went a step further by uncovering indirect connections between the individual and politically exposed persons through familial and business ties.
- Adverse Media Screening: Media analysis revealed the individual’s involvement in a high-profile corruption scandal that was not documented in government databases.
- Data Enrichment: By combining public records with media intelligence, the API provided a more comprehensive risk assessment.
Results
The Watchlists and PEP screening flagged the individual’s connection to entities under active investigation for money laundering. This highlighted significant compliance risks, prompting the institution to halt the onboarding process.
Data-Driven Insights from IRBIS APIs
Key Takeaways from the Investigation
- Data Integration and Aggregation: IRBIS APIs streamlined data processing by connecting multiple databases, ensuring investigators accessed accurate and up-to-date records.
- Cross-Referencing and Entity Resolution: The APIs identified links between disparate records, creating a cohesive narrative of the individual’s activities.
- Risk Profiling and Compliance Monitoring: By providing data-driven insights, the APIs enabled the institution to address compliance challenges effectively.
- Operational Efficiency: Automated screening reduced processing time and improved decision-making accuracy.
Why IRBIS APIs Are Essential for Compliance and Risk Management
Unrivaled Database Coverage
IRBIS APIs offer access to millions of records across federal, state, and county databases, providing unparalleled insights for due diligence.
Advanced Data Enrichment
By leveraging techniques like cross-referencing, data mining, and machine learning, these APIs ensure high data quality and accuracy.
Regulatory Compliance
The APIs assist organizations in adhering to AML, KYC, and other international regulations by offering real-time screening services and access to sensitive information.
Wide Range of Applications
- Fraud Prevention: Identify fraudulent activities by analyzing historical records.
- Customer Due Diligence: Authenticate customer identities and reduce risks during onboarding.
- Background Checks: Ensure compliance by screening candidates, vendors, and associates.
- Public Safety: Support law enforcement by providing accurate criminal history data.
Conclusion: Solving Complex Investigations with IRBIS APIs
The IRBIS Compliance Screening API family offers a powerful toolkit for organizations seeking to enhance due diligence, mitigate risks, and ensure legal compliance. As demonstrated in this case study, these APIs successfully resolved a complex financial fraud investigation by combining SSN Trace, National Criminal Screening, and Watchlists & Politically Exposed Persons Screening.
By leveraging advanced data enrichment and analytics, IRBIS APIs empower organizations to operate with confidence in today’s challenging regulatory landscape. Whether for fraud prevention, compliance monitoring, or identity verification, IRBIS delivers the insights you need to stay ahead.
