Parallel allows you to integrate an advanced risk scoring system that automatically evaluates a client's risk based on parameters defined by your internal compliance policies. This helps you identify and categorize client risks faster and more accurately.
Risk scoring and calculations
Parallels allow you to automatically assess a client’s risk level based on their responses.
To enable scoring in your templates and parallels, you’ll need to create calculation variables. These variables will store values for each risk factor you want to evaluate according to your AML policies, as well as a variable to store the overall risk level.
Keep in mind that variables only store numeric values. For KYC, these are typically used in the following ways:
Binary values: The parameter has two possible answers (yes or no), stored as 1 and 0 in the system. For example, a variable that captures whether a client engages in a high-risk activity can only be yes (1) or no (0).
Scale values: The parameter can have multiple risk levels, such as low (1), medium (2) or high (3).
Tip
Here are some recommended variables to set up in Parallel:
country_risk: Captures risk based on the client’s nationality or country of residence.
1 = linked to a high-risk country
0 = no link to high-risk countries (default value)
is_pep: Indicates whether the client is a Politically Exposed Person (PEP):
1 = identified as a PEP
0 = not a PEP (default value)
activity_risk: Identifies if the client’s activity is considered risky.
1 = risky activity detected
0 = no risky activity (default value)
risk_score: Stores the overall risk level of the client.
0 = Low risk (default)
1 = Medium risk
2 = High risk
If you’ve already created these variables, the next step is to define how their values are calculated.
Once your variables are created, use calculation logic to assign values to each risk parameter based on the client’s answers.
We recommend using closed-ended questions or values that can be easily evaluated—for example, whether transaction amounts exceed €10,000.
Risk-Based CDD Forms
Parallel also allows you to create risk-based KYC workflows using conditional visibility. This lets you show or hide fields based on the client’s risk level or previous responses.
You can set visibility conditions in two main ways:
Based on Calculated Variables (Scoring)
To decide whether a field should be shown or hidden, the system evaluates the value of a variable that has already been calculated in previous fields. It does not take into account calculations from later fields.
To set this up, simply configure each field to appear only when a certain variable—such as the risk_score from the example above—reaches a specific value.
Tip
Continuing with the previous example, here you can see how to activate different levels of due diligence depending on the risk level stored in the risk_score variable:
Simplified Due Diligence: For low-risk clients, where fewer data points and verifications are required.
It will be triggered when risk_score equals 0. Since risk_score = 0 by default, this is the default due diligence level.
Standard Due Diligence: For most clients, with standard verification procedures.
It will be triggered when risk_score equals 1.
Enhanced Due Diligence: For high-risk clients or those requiring more detailed checks.
It will be triggered when risk_score equals 2.
Based on Responses to Previous Fields
The system will show or hide a field based on the answers the client has given to previous questions, using the comparison operator you define.
Example: Form for individual or legal entity
If you don’t know in advance whether a client will be using your services as an individual or through a company, you can add a closed-ended question like:
Who will be recipient of our services?
Option 1: Individual
Option 2: Legal entity
Then, you can add follow-up questions intended only for individual clients and set a visibility condition so that these questions are only shown if the selected answer is “Individual.”