London-based RegTech startup ComplyAdvantage secures $8.2 million in Series A funding

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ComplyAdvantage, which uses artificial intelligence and machine learning to help firms manage compliance obligations and reduce costs, announced today an $8.2 million Series A funding round led by Balderton Capital. The fresh capital will allow the London-based RegTech startup to realise its ambitious growth strategy, and increase product penetration across Europe and North America, with the New York office officially opening this week.

ComplyAdvantage was founded in 2014 and takes a unique approach in providing proprietary, dynamic risk data with more efficient screening and monitoring technology. The startup is already enjoying early success, with some 200 clients globally relying on ComplyAdvantage technology to reduce financial crime risk and take the pain out of regulatory compliance.

Tim Bunting, General Partner at Balderton Capital stated: “In compliance, we see lots of entrants with a new workflow, or user-interface tool that is just repackaging the same data. ComplyAdvantage is doing something different, by developing its own proprietary global data set of individuals and companies that pose a threat.”

Considering the escalating volume of financial crime combined with the corresponding waves of regulation, it seems as if there is a clear neet for an improvement of current anti-money laundering (AML) and counter-financing of terrorism (CFT) solutions.

ComplyAdvantage ounder Charles Delingpole expains: “Compliance is painful, slow and expensive. It is a huge overhead for firms and there is a massive opportunity to unlock this through technology. At one of my earlier businesses, I was the guy who would have gone to prison if we got compliance wrong, and I found it incredibly difficult to rapidly and safely assess the potential risk of my customers using the existing data and software on the market. To make matters worse, the tools generally generated a huge amount of manual work. So I decided to do something about it.”

Using its dynamic proprietary database, which covers Sanctions and Watchlists, Politically Exposed Persons (PEPs), and global Adverse Media, the firm is able to create structured profiles of high risk individuals or companies and their associates based on the very latest data. Its innovative AI screening and monitoring technology not only ensures better accuracy but also helps in cutting through the noise and reducing ‘false positives’ (incorrect risk alerts).

Headquartered in London and with offices in Cluj (Romania) and now in New York, the company’s team stands at over 50 people and includes compliance and risk experts, data scientists, and engineers. Its solutions cover three main areas: a data feed of proprietary AML risk data, an on-boarding screening and monitoring platform for ‘know your customer’ (KYC) processes and a real-time transaction monitoring platform to detect suspicious customer behaviours.