Amsterdam/Munich, October 11, 2023– cleversoft group, a leading provider of cloud based RegTech services to the financial industry, acquires the AI transaction monitoring unit of Amsterdam-based ComplianceWise B.V. Through the acquisition if the solution, which is mainly used in the Benelux countries, cleversoft adds another powerful building block to its Financial Crime Prevention Suite.
The AI based transaction monitoring solution CW360° of the Dutch ComplianceWise B.V. focuses on the detection of risk indicators via AI based algorithms. In doing so, it scales from originally rule based to AI detection mechanisms: When transactions fail to fit a known and expected behaviour, outliers will be reported for further investigation. Confirmed outliers will strengthen the machine learning model to alert on such cases. And the rejected ones (i.e., false positives) will teach the system to accept such behaviour in the future. This future proof solution enables financial institutions to reduce their false positives and shape their alert best fitting to their Systematic Integrity Risk Assessment (SIRA).
The addition of the CW360° solution, being renamed to cleverForensicDetection strengthens the Financial Crime Prevention unit of cleversoft group in its goal to service its customers in the complete solution of know your customer (KYC) and prevention of money laundering (AML). To this end, two significant acquisitions were already made prior to the CW360° acquisition: BusinessForensics (2020), specialised in data driven case management; and CDDS (2021), which maintains a unique library of PEP and Sanctions list data and KYC solutions and now CW360°. This extensive integration of financial crime prevention solutions – from PEP/Sanction list to FIU reports – makes the cleversoft Financial Crime Prevention Suite a veritable one-stop-shop-solution.
The cleversoft group’s acquisition of CW360° is the first step in the second round of buy-and-build acquisitions backed by cleversoft’s new Private Equity Sponsor Levine Leichtman Capital Partners (LLCP) from Los Angeles. cleversoft group and CW360° create an organization with more than 180 employees and more than 25 million EUR in revenue and more than 1,000 customers.
Florian Clever, CEO & founder of cleversoft, explains: “In the area of Financial Crime Prevention we are already a holistic expert for KYC and AML services. With this transaction monitoring platform as our first acquisition with LLCP we are further expanding our fraud prevention expertise in a growing market, completing our portfolio and becoming the one-stop-shop for regulatory solutions.”
Lisa van Bussel, Managing Director of cleversoft Forensics B.V. explains the reasoning behind the acquisition: “ We are happy to bring CW360° into our organization, enabling us to join forces in fighting financial crime via the detection mechanisms of the solution. The strong integration between cleverForensics, cleverKYC and cleverForensicDetection allows us to offer clients an even more powerful, now AI-based, service in in the fight against financial crime. ”
Christiaan Dappers, founder and CEO of Compliance Wise adds: “We are happy to hand over our CW360° to the cleversoft group. The cleverForensicDetection team will be able to explore new opportunities to grow the AI based monitoring platform in the upcoming years. In addition, our clients can enjoy the service and development power of a leading European RegTech group. Being able to become part of the cleversoft group will enable them to enjoy synarchies, bring additional AI knowledge, and grow the company together, while we focus on our core business of providing onboarding solutions for accountants. ”
The cleversoft group is a leading provider of cloud based RegTech services to the financial services industry. The company is headquartered in Munich and has offices in Amsterdam, The Hague, Frankfurt, Luxembourg and Sofia. A special focus of the group is the delivery of an integrated one stop shop automated solution to combat financial crime (KYC, AML and (in- and external) Fraud), which are developed and serviced by, among others, the specialized cleversoft Forensics unit (formerly BusinessForensics).
cleversoft provides more than 1,000 financial institutions worldwide with digital solutions and services to optimize compliance-related business processes – from data management and calculation of regulatory data to the production of required documents and marketing materials, e.g., in accordance with ESG/SFDR, MIFID II, 6AMLD, Solvency II, IFRS 17, PRIIPs and IORP and more.
Following cleversoft’s compliance commitment, customers are provided with all required service updates for the respective regulations – which is unique in the industry.
ComplianceWise is the frontrunner in software that helps accountants and tax advisors to comply with Anti Money Laundering laws and regulations.
ComplianceWise is founded 2013 in Amsterdam.
Today, more than 400 offices within this space work with Grub, the SAAS solution provided by ComplianceWise.
Grub gives the carefree and secure feeling, accountants and tax advisors are looking for, therefore also called ‘Software as a Relief’.
ComplianceWise is also partner of several industry associations within the Dutch accountancy and tax advisor sector.