Unknown entity name matching in Grid
The Unknown entity type is designed to address the need for screening a name when there is insufficient context to determine if that name is a Person or an Organization or when there is a requirement to capture a larger number of results.
Unknown entity name matching logic
The Grid name matching engine requires inquiry name screening submissions to be accompanied by a label identifying it as a particular entity type. This is required so the matching software, review services, and risk-based filtering logic can be applied to the particulars of each type.
When an inquiry submission classifies a name as Unknown, Moody's name matching classification technologies and algorithms analyze the name and determine, with high probability, if that name is a person or an organization. Once the classification is complete, the name is processed for screening.
The classifier logic is intentionally designed to be conservative in its determinations to mitigate against the possibility of a missed alert. While it aims to avoid false negatives, our customers who select this option should expect to receive a high number of results, many of which are likely to be false positives.
Note
For optimal screening results, we encourage and recommend all Grid customers to continue submitting names as either a person or organization when the name is known to be one or the other.
When to use the Unknown entity classification
Use the Unknown entity type:
When screening a name that is not known to be either a person or an organization.
If you are presently submitting a name twice – once as a person and again as an organization – due to a lack of name context or clarity.
When your firm must comply with stringent compliance and due diligence regulations, and you are required to cast a wider net for a greater number of results.
This feature can be especially beneficial to firms that monitor and screen transactions.
If your firm is prepared to support a higher number of false positives. This classifier's screening logic intentionally screens these names as if they were submitted twice, once against persons and again against organizations.
When not to use the Unknown entity classification
Do not use the Unknown entity type:
As a catch-all solution for submitting an entire portfolio of names through the system.
This action results in a high number of results, many of which are likely to be false positives.
If you believe the classifier logic reduces false positives.
The opposite is true, as this logic does not label a name as a person or an organization without a high degree of confidence. Firms who elect to use the Unknown type should expect to experience a higher number of false positives.
Compatibility
The Unknown entity type classifier is available and compatible with all Grid workflows and data transmissions that presently support person and organization entity name screenings. This includes:
Grid web interface inquiry and search workflows, as well as spreadsheet upload operations.
SFTP Review Inquiry Batch (RIB) submissions for pipe-delimited and XML file format versions 11.0/1.4 and higher.
REST API input and response submissions. Schema upgrade may be required.
All portfolio monitoring, iLists, filters, PDFs, reports, and alerts that include inquiry type or entity type values.
Note
While this option may solve some business challenges, it may not be suitable for all business needs.
Moody's encourages all of our Grid users to continue submitting names as either a person or an organization when that name is known to be one or the other.