Marijuana is legal in many countries. However, financial institutions still encounter risk associated with marijuana related businesses (MRBs). The primary risk is potential for inadvertently permitting money laundering activities resulting in fines and reputational damage. But the risk MRBs pose to your financial institution blends into other lines of business as well. In addition to money laundering, financial institutions with marijuana related business transactions could face SAR reporting inaccuracies, problems with government guaranteed loan programs, elevated borrower default risk, and collateral securitization and guarantor specific risks. A thorough understanding of a customer’s interconnected business network is critical to mitigate today’s legal and compliance hazards for financial institutions.
Palturai delivers an effective way to identify and monitor business partners who have a direct or indirect connection to marijuana related businesses. Palturai BusinessGraph solution enhances visibility of your client’s and potential client’s business network – and their possible involvement in the marijuana industry.
Palturai’s BusinessGraph delivers insights that global industry leaders trust to drive enhance their financial institutions’ safety and soundness. Integrating this solution uncovers legal and business relationships between companies and people and makes these insights readily available as part of existing business processes. We enrich Know-Your-Customer (KYC) beyond current BSA/AML requirements, improve loan portfolio monitoring, and reduce risk in merchant processing.
Many more Use Cases
In addition to the marijuana use case, there are many other uses of Palturai BusinessGraph in financial services. In addition to enhancing KYC processes, users can identify and map ultimate beneficial owners (UBO) in seconds and discover and mark customized “trouble spots” such as bankruptcies, PEP, and sanctions in the business network. The solution also adds value in cleansing customer record master data and monitoring and automatically updating their information. Sales and marketing cases uses will be productive to find the shortest path to potential partners and create warm leads.
If you are interested in finding out more about our solutions and further use cases, please contact us.
