Attribute: Brand Activity

Description

Identifies businesses that engage in activities with a high compliance risk.

Child attributes

• activity_type response values refer to high-risk categories of business activities.
• compliance_risk_level is high for all flagged businesses in Enigma KYB, which will expand in future iterations to varying levels of risk.

Coverage

• Brands: We have classified ~130K brands as having high-risk activities. This includes online-only businesses (those without any identifiable physical address).

Data sources

• The "High-risk activities" attribute is derived from the list of names, websites, and public web descriptions associated with a business via a set of heuristics. Names and websites are derived from all of Enigma's data sources, from card transactions to legal entity registrations.

Methodology

• Enigma looks for keywords through industry descriptions, names, and website URLs associated with businesses. Enigma does not currently look at the content of a website.
• For example, to classify a business as having a high-risk activity of "cannabis", Enigma looks for key terms within industry descriptions, names, and website URLs: cannabis, marijuana, dispensary, CBD, THC, Ganja.

Why use Enigma KYB's high-risk classification?

• Enigma's high-risk classification improves automated customer onboarding by identifying businesses that engage in activities with a high compliance risk, allowing those businesses to be reviewed manually or follow additional risk assessment processes before onboarding. This increases confidence in your organization's automated onboarding workflow and ensures you're only bringing on businesses that meet your desired risk standards.

High-risk categories

• Cannabis: Brick & mortar or online retail stores that primarily sell cannabis/marijuana and related products (THC, CBD, etc.), cannabis/marijuana growers or distributors, and software providers for the cannabis/marijuana industry.
• Tobacco and Vaping: Brick & mortar or online retail stores that primarily sell tobacco and vaping products (cigarettes, cigars, e-cigarettes).
• Firearms, Weapons and Ammunition: Brick & mortar or online retailers that primarily sell guns, firearms, weapons, and ammunition; or shooting ranges or related locations.
• Adult Entertainment and Dating: Dating (online dating sites and applications), Adult entertainment clubs (clubs that are primarily strip clubs, gentlemen's clubs, sex clubs) but not businesses that are primarily just night clubs, adult entertainment retail stores (e.g., sex shops, but not other types of stores like lingerie stores), online adult entertainment sites (pornography sites, pay per view chat sites/apps)
• Gambling and Sports Betting: Casinos, online gambling sites, sports betting websites and B&M retail locations, fantasy sports leagues (but not other sports-related businesses), bingo halls
• Payments and Money Transfer: Payment processors, POS providers, crowdfunding sites, factoring, lending services
• Multi-level marketing: Multi-level marketing, pyramid schemes
• Pawn Shops, Check Cashing and Payday Loans
• Cryptocurrencies and Digital Assets: Cryptocurrencies, blockchain, digital assets, digital wallets, crypto/blockchain related infrastructure
• Investments and Financing: Investment brokers, lending instruments
• Legal Finance: Collections agencies, bail bonds
• Gift Cards: Gift card retailers, retail stores that buy unused gift cards, websites whose primary purpose is selling gift cards
• Health and Lifestyle: Diet centers, supplements/nutraceuticals and other products not regulated by the FDA, hair extensions
• Prescription Drugs: Pharmacies likely to sell prescription drugs

Data Fields

Field Name	Description	Data Type
activityType	The type of high-risk activity associated with the business. High risk categories are: - Cannabis - Tobacco and Vaping - Firearms, Weapons and Ammunition - Adult Entertainment and Dating - Gambling and Sports Betting - Payments and Money Transfer - Multi-level marketing - Pawn Shops, Check Cashing and Payday Loans - Cryptocurrencies and Digital Assets - Investments and Financing - Legal Finance - Gift Cards - Health and Lifestyle - Prescription Drugs	string