Know Your Customer (KYC)
There are two main applications of KYC in terms of capital markets:
KROTON Suspect Miner advanced machine learning models utilize multiple features of investment profiles, SEDAR filings, and transactions to detect suspicious activity. KROTON's active learning technology enables investigation teams to detect previously unknown anomalies, and new techniques developed by the criminals in a pro-active fashion. Typical typologies of interest are:
Transactions by co-ordinated parties can be utilized for price manipulations of security in particular for small-cap stocks. KROTON Link Miner uses advanced graph network algorithms to identify suspicious sub-networks for price manipulation. Also, relations to entities that have been banned by SEC, could be revealed by link analysis.
The sanctions screening covers the following cases utilising the KROTON Sanctions Miner :
H3M KROTON modules work hand-in-hand with legacy rule-based compliance systems and upgrade them with the help of Artificial Intelligence. H3M flips the paradigm. Most platforms help firms comply. Crime detection is a by-product. H3M is different. Designed from the ground up to uncover hidden links to detect and prevent crime, better compliance, enhanced regulatory relations, competitive advantage, and brand value are great by-products. The KROTON product suite includes 4 AI-based modules which powerfully combine compliance know-how with data science: