Through its partnership with Flaminem, Bpifrance is scaling its digital due diligence capabilities.
In order to be aligned to the French Anti-Money Laundering and Counter-Fighting of Terrorism (AML/CFT) regulations, Bpifrance has decided to implement an IT process designed to collect information about its customers, in compliance with the so-called Know Your Customer (KYC) obligations introduced by the 4th European Anti-Money Laundering Directive, the Decree of 18th April 2018 and the contributions of the ACPR guidelines of 14th December 2018, which require financial institutions to deal with the subject from an operational perspective.
Bpifrance called on RegTech Flaminem to co-construct a solution adapted to the needs of operational staff who deal with KYC files on a daily basis, based on a partnership approach. Bpifrance chose Flaminem because of its expertise and its ability to deploy a KYC platform in SaaS mode, adapted to its needs, constraints and regulatory environment.
In this respect, the digitization of a process as cumbersome as KYC (Know Your Client), in application of AML/CFT regulations, anti-corruption and anti-fraud law (Sapin 2) and international sanctions (embargoes), produced tangible operational benefits:
- Improved data visualization to facilitate the work of employees on client stakeholders (shareholding graph, calculation rules to identify the beneficial owners, including cross-linking.)
- Real-time AML/CFT risk scoring according to a predefined risk classification
- Time and efficiency savings in processing e-reputation alerts allowing checks on multiple stakeholders and updated as regularly as desired
The stakes for Bpifrance are considerable, both in technical and business terms:
- Integration with Bpifrance's IS to ensure the synchronization of client information and notifications related to KYC risk and its evolution over time, all in a secure context;
- Ensure the scalability necessary to create tens of thousands of due diligence files per year, while facilitating stock recovery and remediation operations for client files, which represents huge volumes.
The project began in 2018 with the realization of a pilot, followed by the operational deployment of the solution to two regional departments. The national deployment is now completed with more than 1500 Bpifrance employees using Flaminem KYC on a daily basis.