Methodology

1. Classification Architecture

Every recurring stakeholder is assigned to a defined taxonomy:

• KYB – Know Your Business
  Commercial customers and counterparties.
• KYS – Know Your Supplier
  Vendors, contractors, and service providers.
• KYC – Know Your Counterparty
  Connected individuals such as UBOs, directors, or shareholders.
• KYA – Know Your Applicant
  Applicants or employees when HR governance is in scope.

Classification ensures structural clarity and comparability.

2. Case Construction

Each case includes:

• Identity and ownership verification
• Legal and structural review
• Documented relationship rationale
• Exposure mapping
• Concentration analysis
• Transaction behaviour assessment
• Risk scoring and recommendation

Cases are not notes.
They are governance files.

3. Threshold Logic

Governance becomes operational only when limits are defined.

Typical structural thresholds include:

• 20 percent concentration of revenue or cost
• High-value transfer triggers
• Name and IBAN mismatches
• Introduction of new bank accounts
• Ownership or structural change signals
• 12-month case expiry

Thresholds convert passive information into mandatory review.

4. Monitoring Tiers

Varqus provides three monitoring intensities:

• Annual Refresh Discipline
  Full case review within 12 months.
• Monthly Monitoring
  Behavioural and exposure review on a periodic basis.
• Real-Time API Monitoring (Premium)
  Bank connectivity and transaction-based signal detection with reduced latency.

Each tier increases sensitivity and governance responsiveness.

5. Escalation Integration

Monitoring without escalation is cosmetic.

Signals trigger:

• Review
• Enhanced due diligence
• Decision gates

Governance must interrupt momentum when exposure exceeds appetite.