The National Association of Commercial Finance Brokers (NACFB) has partnered with data analysts Red Flag Alert to provide its members with access to anti-money laundering (AML) and company credit checks.
The NACFB, which is made up of more than 2,200 brokers and lenders, has agreed a three-year exclusive partnership with the financial insights and business intelligence firm to give its members access to the analysts’ AML, compliance and risk management tools.
This includes company monitoring and director due diligence checks, being able to run 6,000 free AML searches and reports, and discounted subsequent searches.
By using the Red Flag Alert platform, NACFB members will also be able to exclusively access insolvency and bad debt data, Companies House records and commercial credit reports on all companies.
“Criminals are exploiting the pandemic to illegally access cash,” said Norman Chambers, managing director of the NACFB.
“According to some estimates, last year alone, around £26bn was lost to bounce back loan scheme fraud and defaults. Brokers and lenders need protecting against these financial losses, whilst still being able to meet borrowers’ demands for quick, seamless services.
“The rich data and easy-to-use platform provided by Red Flag Alert will help empower our members to beat fraudulent applications and effectively satisfy genuine requests for finance.
“Financial crime and fraud is a relentless virus that’s becoming more and more sophisticated. We need disruptive tech and data, which has the power to tackle this, without making borrowing and lending cumbersome and time-consuming for all parties.
“We’d heard many positive things about Red Flag Alert’s services and how these were being successfully used by brokers and the finance community to enhance AML practices and compliance. It was a natural choice for us to invest in bringing their services to our members and embrace these in the fight against fraud.”
“Covid has accelerated digital transformation within borrowing and lending, and transactions will become increasingly faceless,” added Richard West, managing director of Red Flag Alert.
“It’s critical that brokers and lenders can quickly and comprehensively complete know your customer and business checks to mitigate risk and enhance customer experience. Our partnership with the NACFB is very much geared towards this.
“It’s incredible to be partnering with such a leading organisation and we’re looking forward to developing the benefits we can offer members.
“Looking beyond risk management, data and insight has the potential to help brokers optimise sales and marketing through better verifying prospects. This is a forward-thinking, disruptive approach that’s already being embraced by the NACFB.”