ComplyCube Launches Custom Risk Engine to Automate Explainable AML Risk Scoring

ComplyCube has launched its Custom Risk Engine, a tool designed to automate bespoke Anti-Money Laundering (AML) risk methodologies for regulated firms. By moving away from manual spreadsheets and rigid vendor-defined scores, fintechs can now evidence their specific risk-based approaches at scale, satisfying increasing scrutiny from UK and EU regulators regarding auditability and methodology transparency.

What was announced

The Custom Risk Engine, launched on September 28th, 2026, allows firms to apply their board-approved AML risk factors, weightings, and thresholds to every customer automatically. The tool is designed for regulated entities in the UK, the EU, and other jurisdictions where a risk-based approach is mandated. It categorizes customers across four risk levels, ranging from low to very high.

The system offers flexibility in how ratings are calculated. Firms can choose between a weighted average model or a rule-based approach where the highest-risk factor—such as a sanctions match—sets the overall rating, preventing critical signals from being diluted by lower-risk data points. A single model can also mix these two approaches, allowing for nuanced risk profiles that reflect the complex realities of global finance. This functionality ensures that a high-risk indicator cannot be "averaged out" by multiple low-risk factors, a common flaw in simpler scoring models.

Crucially, the engine provides a comprehensive audit trail. It documents what drove each rating, the evidence used, and any manual overrides performed by compliance officers, including their rationale. This transparency is a direct response to supervisors who increasingly want to see the methodology itself, not just the final rating. Even if a rating is overridden, the underlying assessment keeps updating as the customer's risk profile changes. If a firm updates its risk rules, the platform allows for the re-rating of the entire existing customer base while preserving previous evidence and overrides. The engine is integrated with ComplyCube’s existing suite of services, including biometric and document verification, sanctions and PEP screening, and continuous monitoring, using the same underlying data to ensure consistency across the compliance lifecycle.

"Identity verification vendors have spent over a decade automating the check and almost none of it automating the decision that follows. Verification tells a firm who someone is; customer risk scoring decides what happens next - whether they are onboarded, what due diligence they receive, and how closely they are monitored. For most firms that still rests on a manual, spreadsheet-based assessment that is difficult to evidence at scale. We've built the Custom Risk Engine to do that work automatically, against a firm's methodology, while maintaining human oversight and accountability."

Tarek Nechma, CEO and co-founder at ComplyCube.

The companies involved

ComplyCube is a global digital identity and compliance platform that provides a suite of automated tools for the financial services sector and other regulated industries. Headquartered in London, the company specializes in identity verification (IDV), Know Your Customer (KYC), and Anti-Money Laundering (AML) solutions. Its platform is designed to help businesses navigate complex regulatory landscapes by integrating biometric verification, document authentication, and multi-source screening into a single ecosystem.

As a specialist in the digital identity space, ComplyCube has positioned itself as a provider of end-to-end compliance infrastructure. The firm’s technology is used by a diverse range of clients to manage the full customer lifecycle, from initial onboarding to ongoing monitoring. By focusing on the automation of high-stakes regulatory requirements, the company addresses the operational challenges faced by firms that must balance rapid customer acquisition with the stringent demands of global financial supervisors. The platform's expansion into customizable risk engines reflects a broader market trend toward more sophisticated, audit-ready compliance technology that moves beyond simple "pass/fail" verification checks. The firm operates as an independent entity, providing its global digital identity and compliance platform to a wide array of sectors including fintech, banking, and professional services.

What this means

This launch highlights a significant shift in the compliance landscape, where the "black box" approach of vendor-provided risk scores is no longer sufficient for modern regulators. As supervisors in the UK and EU demand greater transparency into the "why" behind a risk rating, generic scoring models are coming under pressure. The move toward automation of bespoke methodologies suggests that the industry is maturing beyond basic identity checks. The real challenge for the sector now lies in whether firms can effectively translate complex, often subjective, board-level risk appetites into rigid algorithmic rules without losing the nuance required for high-stakes financial crime prevention.