#QuickBiteCompliance Day 143
Inequalities List: Stopping the Wrong Matches, Catching the Right Criminals
Imagine your name is Andrea, but every time you open a bank account, the system flags you as Andrew, a person on a sanctions list. Frustrating, right? This happens because automated screening tools sometimes confuse similar names or words, creating false alarms.
To fix this, financial institutions use an inequalities list—a special list that tells the system: “Andrea is NOT Andrew.” This helps reduce unnecessary investigations while keeping real criminals in check.
How Bad Actors Take Advantage of Screening Gaps
🔸 Exploiting Similar Names – A sanctioned person named Mohamad might register as Muhammad to avoid detection.
🔸 Using Generic Words – Fake companies use words like Trust or Foundation to blend in and avoid being flagged.
🔸 Testing Screening Systems – Criminals make small changes to see which names get through, then adjust their records accordingly.
🔸 Corrupting the Process – If an inequalities list is poorly controlled, bad actors could manipulate it to remove real threats.
Why It Matters
While inequalities lists prevent unnecessary delays for innocent people, they must be managed carefully to ensure real criminals don’t slip through the cracks. That’s why smarter Regtech (Regulatory Technology) and Open Source AML solutions, like Mulai Console, help financial institutions fine-tune their screening processes—keeping both accuracy and security in check.
💡 Learn more about financial crime terms here: https://www.acams.org/en/resources/aml-glossary-of-terms
#Sanctions #AML #FinancialCrime #KYC #Regtech #RiskManagement #InclusiveRegtech #OpenSourceAML #100HariNulis
