Method of ranking politically exposed persons and other heightened risk persons and entities
A method for ranking politically exposed persons and/or other persons and entities that pose a heightened risk based on their importance wherein an exposure index is determined for each person in the population as a function of the existence or absence of a relationship with each of the other members of the population and each of one or more exposure factors such as position held by the person, country in which the position is held, and source of information about the person. The politically exposed persons in the population are ranked in accordance with their respective exposure indexes. The population is sorted and a subset of the population containing those politically exposed persons having exposure indexes indicative or the highest likelihood of illicit financial activity is thereby identified.
1. A method of measuring the importance imparted to each member of a population of persons by having a relationship with at least one other member of said population and/or at least one exposure factor, said method comprising the following steps:
assigning an identifier to each one of said members of said population of persons,
assigning a designator to each exposure factor related to at least one of said members of said population of persons,
for each one of said members of said population of persons, and each one of said exposure factors, recursively assigning an exposure index which is a function of the exposure indexes assigned to each of the respective other members of said population of persons having a relationship with said one member of said population and the indexes assigned to each of the exposure factors having a relationship to one of said members of said population of persons.
2. A method according to claim 1 wherein one of said exposure factors is a function of a political position held by one or more of said members of said population of persons.
3. A method according to claim 1 wherein one of said exposure factors is a function of a geographical jurisdiction in which one or more of said members of said population of persons resides.
4. A method according to claim 1 wherein one of said exposure factors is a function of a source of published information about one or more of said members of said population.
5. A method according to claim 1 further comprising,
preparing a list of said identifiers sorted in order of their respective exposure indexes,
filtering said sorted list of said identifiers to obtain a filtered list of a subset of said population of persons having the greatest importance among said population of persons.
6. A method of ranking members of a population of persons by their importance, each of said members having a relationship with a contributing source selected from the group consisting of all other members of said population and all exposure factors of a group of exposure factors having an effect on the importance of at least one of said members, said method comprising the following steps:
for each member of said population and for each of said exposure factors, counting the number of direct relationships between said member or exposure factor and each contributing source, and recording each count, and
recursively weighting the count recorded for each member as a function of the count recorded for each contributing source until each count reaches a constant magnitude, said magnitude being proportional to an exposure index for said member.
7. A method according to claim 6 further comprising ranking said members in accordance with their importance by sorting a list of said members by their respective exposure indexes.
8. A method according to claim 6 further comprising normalizing the portion of each count contributed by a contributing source by dividing said component by the number of relationships said contributing source has with other contributing sources.