© 2013, Confidential, Pegasystems Inc.

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© 2014, Confidential, Pegasystems Inc.

Global Sanctions

Manager (GSM) Overview

Scott McGorry, Managing Director, Operations

Executive for OFAC/CSU Operations

Doug Rivera, Vice President, Operations Manager

3 3 © 2014, Confidential, Pegasystems Inc.

Global Sanctions Manager (GSM) —

Project Background, Goals & Objectives

• Millions of transactions daily

• Must comply with government regulations

• Perform watch list screening

• Lacking strong case management solution

BACKGROUND GOALS & OBJECTIVES

• Extensive case management capabilities

• Global deployment and operational model

• Flexible for any product, not just payments

• Timely adherence to regulations through SLAs and

escalations

• Organizational flexibility

• Allow the business to define and maintain business

rules

• Single solution for standardized metrics and

reporting

4 4 © 2014, Confidential, Pegasystems Inc.

Global Sanctions Manager (GSM) —

Why Pega for Sanctions?

28 trusted partner for

years users 20,000

production Pega

applications

55+

PROVEN track record

IN-HOUSE expertise

LEVERAGED pre-built assets

KNOWN QUANTITY

5 5 © 2014, Confidential, Pegasystems Inc.

Global Sanctions Manager (GSM) —

Why Pega for Sanctions?

RISK MITIGATION

Consistent, global processes

Guided processing

Improved audit trail

Enforced controls and escalations

In-application links to additional

sanctions screening research tools

Extensive reporting in Pega and

through external data warehouse

6 6 © 2014, Confidential, Pegasystems Inc.

Automate routine tasks

Prioritize work in real-time, driven by business parameters

Route work to balance Global Operating Model

Configure business rules “on demand”

Absorb new products/volume without further investment

Streamline interactions between Ops, Compliance and Client

Global Sanctions Manager (GSM) —

Why Pega for Sanctions? IMPROVED OPERATING EFFICIENCY

7 7 © 2014, Confidential, Pegasystems Inc.

Global Sanctions Manager (GSM) —

Why Pega for Sanctions? IMPROVED CLIENT EXPERIENCE

Of Priority Clients,

Regions, Products

Systematic

Work Distribution

Repetitive

Client Investigations

Reduction Of

Governed By

Service Level Agreements

Priority Driven

Work Management

To Seamlessly Serve

Global Client Base

24 x 7 Follow the Sun

Operating Model

8 8 © 2014, Confidential, Pegasystems Inc.

Global Sanctions Manager (GSM) —

Global Application

Functionality / Work-stream Global Compliance Client Screening Transaction Screening

Regional consistency across teams: APAC,

EMEA, WHEM

Dual Review — Inspect and Repair

systematically enforced in line w/ Corporate

Standards

Systematic enforcement of procedures —

built-in ‘guard-rails’

Audit Trail — more detailed audit history of

decision-making

In-application deployment of email processes

to retain and automate correspondence.

Direct communication between constituents: Transaction Screening,

Client Screening, OFAC

Investigations, Advise &

Consult

Transaction Screening,

OFAC Investigations

Client Screening, OFAC

Investigations

Quality Assurance — Automated case

sampling and creation of a ‘real-time’ Quality

process.

9 9 © 2014, Confidential, Pegasystems Inc.

Global Sanctions Manager (GSM) —

Work Distribution

Document Repositories

and Client

Enrichment

GSM (PRPC)

Transaction

Screening

Client

Screening

Global

Compliance

Quality

Assurance

Sanctions

Screening

Central Utilities

Feedback Loops

(i.e. KYC, AML

Systems)

Central Escalations

and Inquiries Utility

(PRPC)

Client Service Teams

Sanctions Product

Data Store

10 10 © 2014, Confidential, Pegasystems Inc.

Global Sanctions Manager (GSM) –

Integrated Approach with PRPC

Applications

• Able to create the interaction between Operations, Compliance and the Client –

Full integration to existing PRPC applications.

• Utilized existing Automated workflows for Escalations and Inquiries

- Automated Case Creation

- Automated Correspondence

- Service Level Agreements

• Created two-way communications between GSM and PRPC Applications

- XML formatted messages

• Improved Client Experience by utilizing automated workflows

• Improved Operating Efficiency by eliminating email traffic between sanctions teams

© 2014, Confidential, Pegasystems Inc.

QUESTIONS & ANSWERS