Use Case:

Organizations need to monitor transactions involving high-risk third parties to mitigate potential compliance or regulatory concerns. These third parties are classified based on their risk profile, making it critical to track transactions associated with them.

The High-Risk Subject Classification analytic enables organizations to select classifications from a predefined list and assign risk levels (weak, moderate, or strong) based on their risk tolerance and compliance priorities. Examples of classifications might include distributors, resellers, intermediaries, government officials, or politically exposed persons (PEPs). The system then uses these risk assignments to flag transactions involving subjects that match the selected classifications for further review. By monitoring these high-risk relationships, organizations can proactively manage third-party risks and strengthen compliance oversight. This analysis can be further refined using inputs from other compliance activities, such as hotline reporting, customer due diligence, and know-your-customer processes, helping organizations reduce exposure to regulatory violations and reputational damage.