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Why use data mining in your compliance management?

28 FEB 2020

28 FEB. 2020 / por Marketing

Making decisions based on data is a must requirement in the present day. Corporations know how essential this is, so they started using data mining to obtain relevant information. And one area that notably deserves special attention is the compliance department.

Many companies fear to be involved in a corruption scandal or fraudulent activities as it damages their image and can cost a lot. Therefore the adoption of new compliance practices and technologies is shaping the future of this segment. 

Well, where does data mining enter into this story?

For one moment, start to imagine the enormous volume of data that exists on the world wide web, with information from different types, sources, locations. The process of scanning it and getting a reliable analysis is hugely time-consuming, and a professional responsible for investigations such as AML, fraud, and corruption would struggle to make it manually.

There is when data mining gets its importance. 

Data mining is a term used to explore massive volumes of data. The general objective is to identify some standard models and extract value from the data or, better said, understand what the data wants to express.

How is this concept of data mining constituted?

  • Selection: choosing the data of interest.
  • Formatting: starting to identify and segregate the information.
  • Identify patterns, trends, and hidden factors.
  • Interpret the data, getting proper use of it.

Adapting the data for decision making:

What every manager seeks is highly relevant information that influences their decision-making process, making it more assertive.

To help you better understand this step of adjusting the data for the decision-making process, we also recommend reading our article on how to make decisions based on data.

Straightforwardly, we can define a functional process to follow:

1- Problem identification.

2- Definition of hypotheses.

3- Fetch the necessary data.

4- Analyze the data.

5- Take the decision.

Through these steps, the decision-making process starts to flow. The data is essential because it needs to be authentic and updated so that the final decision makes sense.

Data-driven compliance!

Compliance is an area focused on a company’s organizational structure. Its focus is on structuring internal policies, developing controls, and applications for governance and management. Its primary purpose is to inhibit corruption, fraud, money laundering, and conflicts of interest.

When we talk about compliance driven by data, we raise hypotheses such as:

  • How to capture diversion of money through the financial data of the company, crossing information with data of employees?
  • How to identify bribery with a supplier?
  • How to identify fraud in reports, finding irregular situations in the company’s final results?

To these address points above, it is necessary to use data mining as a resource that will assist in identifying the essential information for decision making.

And what is essential for compliance?

We have many important factors surrounding the compliance environment, and to use data mining, it is necessary to have in mind what is essential.

  • Business registration forms?
  • Processes or sanctions linked to companies?
  • Due diligence?
  • Background check on employees or business partners?
  • Identify fraud?

The identification of objectives is the first step to start performing data mining on the web. If you do not know the priorities, you may end up complicating and spending resources unnecessarily, as today there is an extensive universe of sources providing public data, as well as private or paid information.

Depending on the country or region, there might be a compilation of accessible public (usually free) information, as some listed below:

  • Juridical processes
  • Cadastral situation
  • Relationship networks
  • Assets
  • Business history
  • Sanctions

This information is mined in several sources and provided with the use of software and SaaS platforms.

Another significant advantage in the use of data mining is its ease of access and integration with databases. Thus the manager gains productivity with the optimization of time through automated searches, saving time to spend in analysis instead of getting lost with so much information.


Developing Data minded strategies is becoming fundamental for every type of business, and compliance is an area of great concern, given the high impact that a lack of relevant information can have.

In the time when technologies are more and more mature and efficient, contributing to the investigations and improving processes, finding the right mining platform can be challenging. Still, if you know your priorities and objectives, it’s a good start. 

upLexis can help to optimize background checks in various ways. It is present in the market since 2008, helping large companies to become more analysis-effective thanks to its solutions that automate the processes, searching and organizing BIG DATA at speed.

You can learn more about the power of data by reading: 

More data, less intuition. 

We hope you find this content useful, and we will be delighted if you keep following with us.