Goodeve Selects Flagright for AML Controls Before Latvia Launch

Goodeve, a Latvian investment platform that has not yet taken on clients, has chosen Flagright for anti-money laundering (AML) transaction monitoring, customer risk scoring and fraud prevention, the companies said on October 26.

The deal is an example of AML compliance for new investment platforms: controls are installed and configured before the first account is opened. It puts risk assessment, activity tracking and alert investigation in one system for Goodeve’s compliance team. The companies did not disclose the contract value.

What Goodeve is buying from Flagright

Goodeve will use Flagright to track account top-ups, trades in financial instruments and withdrawals in real time. The monitoring rules are ones the team can adjust.

The platform will also screen individual and corporate clients, and relevant counterparties, against sanctions lists, politically exposed person registers and adverse media sources. Customer risk ratings will update as behavior and exposure change, through dynamic risk scoring.

Alerts go to a central case management workspace. AI-generated case narratives and entity mapping are meant to help investigators trace connected activity.

Goodeve can also test rules against historical data before switching them on. Quality assurance checks and audit trails are meant to keep reviews consistent and recorded.

Who runs Goodeve and where it is licensed

Goodeve is operated by SIA IBC INVEST, a Latvian investment brokerage that holds a license from Latvijas Banka, the country’s central bank. Latvijas Banka took over supervision of the financial sector from the Financial and Capital Market Commission on January 1, 2023.

The platform is being designed to give investors access to loan-backed financial instruments. The company intends to widen its product range over time. Latvia will be its first market, with other European Union countries to follow.

Neither company named a regulator in connection with the Flagright agreement, and the announcement does not say when the platform will open to clients.

Why AML compliance for new investment platforms starts early

A licensed brokerage is an obliged entity under EU anti-money laundering rules. It must identify and verify clients, assess their risk, monitor their transactions and report suspicious activity. In AML compliance, new investment platforms have no history to point to when a supervisor asks how they reached a decision, so the records they build from the first day become the evidence.

That is the case Goodeve is making for its timing. Chief Executive Ieva Narbute said the company wants to do the groundwork before clients arrive.

“We want Goodeve to make investing easier to understand and straightforward to use.”

Ieva Narbute, CEO, Goodeve

Narbute added that the team is building controls “to understand our clients, identify unusual activity, and make well-documented decisions.” She said Flagright brings monitoring, screening and investigations into one workspace.

Testing rules on historical data matters for a firm with no live customers. Thresholds can be tuned against sample or industry data before they generate alerts that analysts must clear. The approach also ties to a wider debate over real-time versus batch AML monitoring, which Goodeve has settled in favor of real time for top-ups, trades and withdrawals.

What it means for compliance teams at new platforms

For AML compliance officers at new investment platforms, the practical question is whether controls can change as the product does. Goodeve plans to add products and enter other EU markets. Each addition changes the risk profile of its customers and the pattern of fund movements.

Baran Özkan, Flagright’s co-founder and CEO, said the setup is built for that.

“Goodeve is putting financial crime controls in place as it prepares to launch.”

Baran Özkan, Co-founder and CEO, Flagright

Özkan said the tools let the team adapt its controls as customer activity and the product offering develop, while keeping a clear record of its decisions.

Loan-backed instruments add their own questions for monitoring. Funds move in and out of a platform in ways that differ from a conventional share-dealing account, and analysts need to see how top-ups, purchases and withdrawals connect. Entity mapping is intended to address that for connected parties.

The wider rulebook is also moving. The EU’s Anti-Money Laundering Regulation, Regulation (EU) 2024/1624, applies from July 10, 2027. It sets one directly applicable set of customer due diligence rules across the bloc, which matters to a platform planning to passport into other member states.

Flagright and the transaction monitoring field

Flagright sells AI-based transaction monitoring and AML case management to fintechs and banks. In June it announced a $12.5 million Series A, with Frontline and Y Combinator among the existing backers, to expand its AI work in financial crime compliance and its US presence. Flagright’s announcement of the Goodeve agreement repeats the terms above.

It competes with established monitoring vendors and with newer entrants such as Hawk AI, which counts Commerzbank among its customers. Many of the newer vendors pitch the same combination Goodeve has bought: monitoring, screening and case handling on one data model, in place of separate tools stitched together. That theme runs through the debate over siloed AML tech stacks.

The Goodeve agreement involves a small, pre-launch buyer, so it says little about how the system performs at volume. Neither company has published alert volumes, false positive rates or a go-live date for the monitoring rules.

What to watch next

The next markers are Goodeve’s launch date in Latvia and the first EU country it targets after that. Any expansion would bring the platform under additional national supervisors. The EU anti-money laundering regulation takes effect on July 10, 2027.