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OpenText™ Analytics Suite is an important supplement to a front-line AML detection system. It can drastically reduce the time and effort needed to consolidate data for preparing reports by unifying and simplifying the process of data collection from disparate applications. The greater automation OpenText Analytics offers means less manual effort and faster reporting.

Anti-Money LaunderingWhere OpenText solutions can add power and speed to your AML system

Both the source and the beneficiary of these illicit transactions can be problematic. The ill-gotten profits could be from drug sales, arms smuggling, human trafficking, selling embargoed products such as elephant ivory and “blood diamonds,” or plain old fraud and theft, such as from hackers stealing credit card numbers. This money could be benefit-ing terrorist groups (a growing threat), criminal gangs, or sanctioned countries such as Russia, Yemen, or Zimbabwe2.

Naturally, this sizable problem has prompted intense Anti-Money Laundering (AML) regula-tions and record-keeping requirements on a wide range of financial processes and indus-tries. These include not only banking and online payments but the casino/gaming industry, art auctions, securities and stock trading, life insurance, import/export trade, and even retailers (since gift cards are an increasingly popular way to invest ill-gotten gains). Global spending on AML compliance is expected to exceed $8 billion in 2017, according to PwC.

Fighting Money Laundering: The ChallengesConsequences of not handling AML compliance efficiently include:

• Burdensome overhead costs to track and analyze billions of financial transactions and turn in required reporting forms.

• Missing signs of money laundering, which mean the organization inadvertently supported criminal enterprises.

Money laundering – concealing ill-gotten profits from crime – is a large and growing problem. The best estimates, such as from PwC1, are that it conceals$1-2 trillion annually, or two to five percent of global GDP. But less than one percent of this money flow is caught by authorities, according to the United Nations Office of Drugs and Crime (UNODC).

1. http://www.pwc.com/gx/en/services/advisory/forensics/economic-crime-survey/anti-money-laundering.html2. https://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx

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• False positives that slow down the flow of business and may delay or deny legitimate transactions, annoying customers.

• “De-risking,” or rejecting customers that don’t have long and well-established histories or whose legitimacy takes too much time and effort to prove – which can cost the company business and potentially drive the customer into the arms of smaller banks that are less able to detect sophisticated money laundering schemes.

• Large fines. The largest on record, in June 2014, was when French bank BNP Paribas pleaded guilty to violating U.S. money laundering laws and paid nearly $9 billion3 to New York State and federal authorities. The next largest fine was imposed in December 2012, when HSBC Holdings paid $1.92 billion to the U.S. Justice Department for negligently letting Mexican and Colombian drug traffickers launder more than $880 million. And as recently as January 2017, Deutsche Bank was fined $204 million by the UK4 and another $405 million by U.S. regulators5 for helping a scheme to move money out of Russia.

• Reputational damage, discouraging potential customers, partners, and investors.

Clearly, these regulated industries need effective AML data manage-ment systems. But AML faces heavier challenges than many other types of financial regulation, adding up to a unique burden:

• Very large data volumes – often millions of transactions a day.

• Many varieties of data types, from cell phone records or even faxes to high-volume electronic records in many different formats, plus written, scanned documents and social media.

• Veracity. By definition, money laundering records are falsified, so they are harder to track. Money launderers can also take advantage of informal and/or lightly regulated channels including peer-to-peer lending, transactions in cash and gift cards, and free trade zones.

• Velocity. Criminals are clever and frequently change the transaction patterns by which they can be tracked. A scam may ripple through a bank or casino’s trading network before the company realizes it is there. An AML system must be constantly tuned and updated so its risk sensitivity is accurate.

• Complexity. The evidence of a crime may only be visible by looking carefully for incriminating patterns, which can be very complicated.

• Heavy compliance and reporting burdens.

• A patchwork of regulations around the globe. The U.S. and UK regulate money laundering tightly, but other countries may have lax or inconsistent laws. Moreover, all of these are subject to change.

• Operating in multiple countries, languages, and alphabets, from Moldova to China or Nigeria.

Those challenges show why even the most fine-tuned AML system can’t go it alone. Detecting suspicious transactions touches off a labor-intensive process of investigating and reporting them to

your company’s board, auditors, and regulators. This requires the investigator to pull together data of disparate types from many different applications (e.g. the core banking applications, the wire transfer system, Know Your Customer records, and more) and blend them into a unified report – a time-consuming and expen- sive process that many companies still handle manually via e-mail and spreadsheets.

Furthermore, the complete AML compliance process involves validating the findings of your specialized AML detection software against a backup system, often hand-built on a lightweight rela-tional database, such as Microsoft® Access®. But a fully featured analytics system can offer more effective validation of the inputs and outputs from the specialized AML system, without the time and effort of coding your own model.

Streamline the Administrative Burden of AML with Backup from OpenTextTo more effectively deal with the burden of investigating and report- ing on suspicious transactions, you need to automate and stream- line all these processes so they no longer take hours a day and require dozens or even hundreds of people. You need the support of a world-class analytics and reporting platform from OpenText™ Analytics. Our robust platform is built from the ground up to support your needs.

The OpenText Analytics Suite uses open, modular architecture so you can mix and match components to fill gaps wherever your AML system lacks functionality. And it is easy to keep our components updated against changing criminal behavior with the Analytics deployment platform, which uses a modular, low-code approach to build and quickly adapt reusable infrastructure components and analytics content.

The OpenText Analytics Suite uses open, modular architecture so you can mix and match components to fill gaps wherever your AML system lacks functionality.

3. http://www.cbsnews.com/news/bnp-paribas-expected-to-get-hit-with-huge-fine-restrictions/4: http://www.cnbc.com/2017/01/31/deutsche-bank-fined-204-million-by-british-regulator-for-serious-anti-money-laundering-control-failings.html5: C:\Users\sholt\Documents\405 million by U.S. regulators

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To serve all your varied audiences – from a board of directors who may want a high-level, visually appealing report that lets them stay on top of compliance efforts, to regulators who need extremely detailed reports in specific formats – the OpenText Analytics Suite can help you speed up and simplify the reporting process. It can create reports in a wide range of popular formats, from HTML5 charts, tables, and gadgets to PDFs, Microsoft® PowerPoint® presentations, and live Microsoft® Excel® spreadsheets.

The OpenText Analytics deployment server platform can further streamline the reporting process because it can consume a wide variety of data types and integrates easily with your other applica- tions. OpenText works with nearly any type of structured data and relational database, including Oracle®, MySQL™, NoSQL, Hadoop®, and more. It offers a wide range of integration APIs, including REST and JavaScript, and can pull data from nearly any application.

Other technical benefits of OpenText Analytics include near-linear scalability to handle billions of rows of data. Meanwhile, an anti-crime system needs strong protection against the hackers and fraudsters it is tracking. Multi-layered security features within OpenText Analytics protect sensitive data while allowing easy Single Sign-On and integration into any security infrastructure.

Lastly, localization is important because money laundering networks reach every corner of the globe. We feature auto-matic content localization to multiple languages, currencies, and locales.

Where OpenText Analytics Can Fill the GapThe graphic on the next page [AML Graphic Technology Stack] outlines a typical AML software technology stack and describes specific functions where OpenText Analytics and complemen-tary solutions can be helpful. Working from the top:• Dashboards and visualizations

Humans are visually oriented creatures, and instinctively find it easier to monitor changes and spot patterns through charts, graphs, heat maps, and other graphic interfaces rather than by reading text and numerical output. OpenText Analytics has a browser-based environment with a wide range of visual outputs. You can give your users a selection of pre-configured dashboards or offer greater customization with sophisticated drag-and-drop design tools that include hundreds of HTML5 charts, gadgets, and maps. With a few clicks, you can prepare personalized high-level reports for your board of directors, detailed ones for auditors or regulators, and real-time operational dashboards for investigators.

• Content repository The OpenText™ Content Suite offers a powerful, multi-function document repository for easy reference to investigation materials, audit reports, and regulatory documentation, integrated with the OpenText Analytics function. This repository includes powerful workflow capacities to route documents through your approval process while maintaining the necessary audit trail.

• Ad hoc and self-service reporting Flexible and customizable, the OpenText Analytics approach allows users to set up their own queries on a self-service basis, rather than waiting for IT to build them. Users can freely explore the relevant data, filtering and drilling down to key details or pulling back to view many accounts at once. This lets

you turn on a dime when regulators suddenly impose a new reporting requirement or auditors ask unexpected questions, setting up new reports in minutes.

• Advanced analytics It gives you better insight during the investigative process into larger patterns of behavior that need to be reported to your board, auditors, and regulators, or noted for future investigation. OpenText Analytics offers sophisticated predictive analytics and statistical capacities (such as clustering and time series) that can be used to spot suspicious patterns. You can easily search all related records, regardless of the application in which they are stored, filter them on the fly, or create flexible, easily updatable filters to rule out false positives.

• Report engine layer In the report engine layer of your AML system, OpenText Analytics can consolidate data from a wide range of sources to automatically enrich alerts from exception or risk reporting with details from other systems and sources to provide a complete view of the relevant information. This can help the investigator determine the severity of the suspicious activity that their AML monitoring solution has detected.

• Text analytics A pattern of prohibited sales may be hidden in a series of invoices and bills of lading. To be fully useful, an AML system needs the ability to enhance its conclusions with information from documents and other unstructured data, including email, social media, memos, and contracts. OpenText Analytics, together with OpenText™ InfoFusion™, can read and derive intelligence from such text documents. Our techniques include content management, auto-classification, semantic analysis, natural language processing, and machine learning – so that the insights from both structured and unstructured data can be leveraged side by side within the Analytics Suite.

• Data consolidation and aggregation As noted above, the OpenText Analytics platform can easily draw from and consolidate scores of types of data, making quick work of assembling reports. You can get a high-level look at summary data or drill down to check out individual transactions. It has the capacity to process even specialized subscription data, such as Dun & Bradstreet and LexisNexis® data feeds, PEP (Politically Exposed Persons) lists, and social media content.

Outside the AML technology stack, OpenText offers another helpful function: “safe sandbox” capacity for doing what-if anal-ysis. When tuning an AML system or implementing a new rule, compliance officers need to know what effect it will have on the outcome. OpenText Analytics offers powerful what-if modeling capacities, along with visually engaging charts and graphs to make the various outcomes immediately distinguishable.

This modeling capacity can also be adapted as a system for vali-dating the findings of the core AML detection software, as required by auditors. The OpenText Analytics algorithms can be set up to demonstrate that even an unrelated application given the same instructions as the core AML software will also spot suspicious transactions and rule out innocent ones. Streamline the compli-ance process by assembling your second-check system out of convenient prebuilt components within the OpenText Analytics system, rather than hand-coding.

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Speed Up and Boost the Reporting Power of Your AML System with Support from OpenText AnalyticsOpenText Analytics is an important supplement to a front-line AML detection system. It can drastically reduce the time and effort needed to consolidate data for preparing reports by unifying and simplifying the process of data collection from disparate applications. The greater automation OpenText Analytics offers means less manual effort and faster reporting.

Our industry-leading collection of APIs assure smooth integration with nearly any application you need to draw information from.

We give you more flexibility to create ad hoc reports, so you can respond more quickly to demands for new queries from your internal investigators, auditors, the board, or regulators.

Further, our powerful, sophisticated algorithms can be a valu- able spot check or “second opinion” to test the efficacy of your detection engine.

With all these advantages, OpenText offers a powerful combi- nation of features that can help your company confidently, cost- effectively, and in a timely fashion stay ahead of ever-increasing monitoring duties, changing risk anticipation requirements, and overwhelming workload.

DATA LAYER

DATA SOURCES

TEXT ANALYTICS MODULEExtract data from: • Social media• Account openings• Contracts

ADVANCED ANALYTICSMODULEConsolidate customers, accounts, transactions, and other data

• Connect to data in multiple systems• Aggregate summary data• Drill down to source system data• Read data in place, no warehouse needed

PRESENTATION LAYER

• Board-level dashboards• Operational dashboards• Reports (summary/detail/drill-down)• KPIs and metrics

Repository for:• Regulatory reporting• Investigation materials• Audit reports

• Ad hoc reporting• Look-up across systems• Single view of alert/case• Self-service data exploration

INVESTIGATION LAYER

MONITORING SYSTEMS(Central AML, sanctions, fraud, and more)

CUSTOMERS, ACCOUNTS, TRANSACTIONS

DOCUMENTS OTHER DATA SOURCES(Social media including Twitter and Facebook, subscription data sources such as Lexis/Nexis and Dun & Bradstreet, Politically Exposed Persons [PEP] lists, and more)

ADVANCED ANALYTICS MODULE• Post-event analysis• Search all related records• Filter on the �y• Independent veri�cation of alert• False positive �ltering

REPORT ENGINE LAYER

• Consolidate data from various sources• Enrich alert details• Exception reporting• Risk reporting

Dashboards, Reports, Analysis, Metrics

Complete AML Technology StackWhere OpenText Solutions Can Add Power and Speed to Your AML System