Ongoing Monitoring

For PEP, Sanctions, Adverse Media and Wallet AML

Risk profiles can and do change over time, and certain users demand periodical scrutiny due to a plethora of factors such as their jurisdiction, lines of business, delivery channels, personal and professional networks. Therefore, an organization that has a well-established risk management framework will set ongoing monitoring parameters for certain users to keep their risk ratings up-to-date.

Politically Exposed Persons (PEP)

Certain users might become a PEP due to an appointment or election to a politically relevant office or either be flagged as a relative or close associate to a newly-appointed PEP. Once such information comes to the surface, reviews are needed to determine if enhanced due diligence should take place to inform the decision to continue or terminate the business relationship.

Sanctions and Watchlists

After the initial onboarding, users that did not at first present any risk indicator might end up being either sanctioned or added to international law enforcement lists, and failure on the part of a business to update the risk profile of such users and take appropriate measures might entail serious legal and regulatory consequences.

Adverse Media and Wallet AML monitoring

During an ongoing business relationship, adverse media reports might surface relating users to criminal activity (e.g. financial crimes, corruption) or other risk indicators (e.g. hate speech, publicly known misconduct) that could negatively affect the reputation of businesses that continue to engage with such users.

When it comes to cryptocurrency wallet addresses, risk profiles might change and surpass established tolerance thresholds based on new addresses it interacts with, inclusion on sanction lists, or mentions in adverse media reports or other negative sources.

Ongoing monitoring is essentially staying watchful on risk profiling changes to ensure businesses can promptly take necessary action to, first and foremost, block bad actors from using their products and services for ill purposes, and avoid legal and reputational damages.