Algorithmic Beneficial Owner Identification System
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Solution Overview
Problem
Current methods for identifying beneficial owners of legal entities in the EU are manual and prone to errors, posing legal and operational risks, and lack an automated and standardized process that can adapt to changing regulatory criteria.
Innovation Solution
An algorithmic process that automatically identifies beneficial owners of legal entities by acquiring relevant documentation, applying EU regulation criteria through an embedded algorithm, and providing a user-friendly output, ensuring compliance with evolving regulatory standards.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual identification methods are used, then flexibility in applying different national criteria is maintained, but error rates increase and legal/operational risks arise
Solution Approach 1:
The patent replaces the manual mechanical assessment process with an automated computerized algorithm that applies EU regulation criteria to identify beneficial owners. The system automatically processes corporate documents and shareholding data, substituting human manual review with algorithmic analysis to eliminate errors while maintaining ease of operation through automated processing.
2Adaptability or versatility
If standardized EU regulation criteria are applied automatically, then consistency and compliance are improved, but adaptability to national variations is reduced
Solution Approach 1:
The patent creates a universal algorithmic system that can handle multiple EU member states' requirements through a single standardized process. The automated system is designed to apply EU regulation criteria universally across different jurisdictions, making the identification process adaptable to various national implementations while maintaining consistency through standardized automated processing rather than requiring separate systems for each country.
3Productivity
If automated algorithmic processes are implemented, then productivity and efficiency are enhanced, but complexity of the system increases
Solution Approach 1:
The patent implements a self-service automated system where the algorithmic process independently performs the entire beneficial owner identification workflow. The system automatically acquires corporate documents, extracts shareholding data, applies EU regulation criteria, and generates identification results without requiring manual intervention at each step. This self-service approach maximizes productivity while managing complexity through automation rather than human coordination.
4Measurement precision
If comprehensive corporate documentation is automatically acquired and analyzed, then measurement precision is improved, but loss of time for data collection increases
Solution Approach 1:
The patent applies preliminary action by having the automated system proactively acquire and pre-process corporate documentation before the actual beneficial owner identification is needed. The system automatically retrieves corporate documents, extracts shareholding data, and prepares the information in advance, so that when identification is required, the analysis can proceed immediately with already-prepared data, thus maintaining precision without significant time loss.
Data Source
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AI summary
The present system and method is aimed at identifying through an algorithmic process the beneficial owner(s) of legal entities according to the EU anti-money laundering regulation. A user can provide basic inputs to the software without needing to apply by themselves the complex legal criteria set out by the EU regulation and to risk operative and legal errors.