smart-aml_a4.en.ciq
TRANSCRIPT
SMART – AML Anti Money Laundering System
Plug-in SWIFT Alliance Access Any kind of Financial Transactions
Profiling & Behavioral Analysis
CubeIQ Ltd. 78 Vyzantiou St., 14234, Nea Ionia, Attica Greece Phone: +30-210-9530242, FAX:+30-210-6255672 Email: [email protected], web: www.cubeiq.gr
SwallowTech 378 Chaussée de Bruxelles, B-1410 Waterloo, Belgium Ph: +32 2 385 14 65, Fax: +32 2 385 17 43 [email protected] www.swallowtwch.com
SMART-AML Anti Money Laundering System
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A Complete and Friendly Solution for an optimal management
Money laundering represents a growing risk to the financial community. In order to be able to control its business, and better manage its activities, a company needs to know its commercial relationships
by checking the evolution of its clients/employees behavior, and identifying the nature and the cycle of all financial transactions
day-by-day.
Financial institutions are responsible for performing checks, screenings and reporting’s, as well as identifying and denounce any
suspect transaction, while at the same time providing an efficient and reliable service to their customers.
The associated rules and international regulatory framework mainly penalizing the foreign countries, international terrorists and drugs dealer’s lists usually changing, etc., all this creates a complex environment for banks. You need a complete solution that covers all these legal and statutory needs, as well as international rules.
SMART-AML provides an end-to-end AML solution, integrated with the core of banking platform. It is based on the effectiveness of dedicated, automated transaction monitoring systems, together with the introduction of the Risk Based Approach (RBA).
MAIN GOALS OF SMART-AML
SMART AML satisfies the following objectives:
Real-time Payment Screening: Tracking down and screening in real time any payment order before their execution, in order to prevent making funds transactions that risks any managing order violation, foreclosures and other measures.
Transaction Monitoring: The automated process of monitoring transactions upstream or downstream of their execution allows the identification of unusual/ suspicious transactions, including monitoring single transactions as well as transaction flows, for subsequent review and, where appropriate, the reporting to the relevant authorities.
Client Screening (KYC): In order to better segment the clients and answer to due diligence obligations imposed in AML matters, this module collects all the clients’ information and their transactions and makes analysis based on consistency checking rules and triggers the appropriate alerts.
Automatic compliance: with national and international regulations (including watch lists).
Retroactive Searches: The identification and linking of current and archived transactions, as well as existing and closed accounts/relationships, in order to undertake due diligence and respond to external ( e.g., regulatory) enquires.
FLEXIBLE RULES AND RISK – BASED APPROACH
SMART AML is based on a large and flexible set of rules and profiles in addition to a risk scoring models which strongly depend on the institutions business model, the products and services it offers and the nature of its customer base.
We believe that risk-based approach enhances the effectiveness of monitoring for unusual and potentially suspicious activity, to the extent that such activity is distinguishable from legitimate activity.
In all cases the objective is to focus on monitoring the most unusual and potentially suspicious transactions whilst reducing, as far as possible, the “false/positive” rate.
CUSTOMER DUE DILIGENCE TOOLS (KYC)
SMART AML implements the Customer Due Diligence principle which is an important tool of risk identification and assessment in the AML software to detect suspect entities trying to infiltrate a financial system.
It provides tools such as:
List Screening: to determine if an applicant appears inside any kind of published lists, Black lists and internal Watch lists.
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KYC Compliance: Compliance evaluations (get to know the client) to supervise the observance levels of the national and international regulation. Customer accounts are scanned regularly to detect potential red flag that requires the triggering of alerts.
INTELLIGENT ACCOUNTS AND TRANSACTION MONITORING
SMART-AML contains an effective set of risk-based monitoring rules related to financial transactions, its functional capabilities insures the following tasks:
Compare clients and accounts activities during the reporting period against relevant transaction history over a time period that the institution considers to be reasonable and appropriate;
Compare customers’ and their transactions’ data against a broad rule base and risk scoring models;
Issue alerts if unusual and potentially suspicious transactions are identified;
Track those alerts in order to ensure that they are appropriately managed within the financial institution and that suspicious activity is reported to the authorities as required;
Maintain an audit trail for inspection by the institution's audit function;
Provide appropriate aggregated information and statistics.
AML MODULE AND PROFILING
This modular and friendly system allows, amongst others, the automation of the following tasks:
Screening based on black lists (watch-lists) and PPE lists, “Politically Exposed Person” (PPE/ PEP).
Intelligent Monitoring on clients and/or employees actions, …
Meticulous Analysis on financial and operational transactions.
Trends behavioral identification and commercial relationship.
Identification of client’s profiles and their potential risk.
Alerts generation and their orientation towards the appropriate person.
Quick and effective follow up and management of actions and transactions on hold.
SCENARIOS
A scenario is a combination of a filter and a group of actions that the system applies during the checking process according to a set of user-defined rules. The user configures its appropriate rules based on selected criteria to identify the clients/transactions making a model called “Scenario”.
The scenario establishes the AML upper level control process. The user specifies:
The control strategies to be used according to the nature and characteristics of the flow.
The origin of the watch-lists to use (OFAC, ONU, UE, PPE …).
The type of control (by word or by phone).
The set of rules to be applied.
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Actions and transactions to be gathered in the same group.
…
ALERTS MANAGEMENT SMART-AML relies on its robust alert engine that is essentially the basis from which all AML investigation begins.
With a risk based approach it is imperative that the assembled data can be dissected to reflect the risk factors that the institution has identified. The system provides an effective investigation tool by presenting alerts hierarchically by category, data sources, priorities...
All important information related to the relevant alerts are available including client details, accounts, beneficiaries, related transaction...
Depending on its risk degree, an alert can lead to block the relevant transaction or simply notifying the concerned person of its presence. The user analyses these details, and takes one of those three decisions (reject, accept or notify a second level controller). A set of reports are available including Suspicious Activity Report (SAR).
OTHER FUNCTIONALITIES
Security is applied everywhere in the system: "Role", "Password Metre", "Alerts" on processes, “Four Eyes” controls (double validation).
A « Scheduler » allows the system to launch and monitor batch processes, etc.
Black lists (OFAC, ONU, UE, BKEN...) as well as PPE lists are automatically downloaded from their respective suppliers’ websites and integrated into the application by using the scheduled tasks.
Compliant officers are directly alerted to the existence of new alerts through pop-ups and/or e-mails.
By defining access rules based on selected criteria such as nature of the flow and/or transaction properties so that the administrator can limit user’s access to the only concerned client and transactions.
All systems activities and user’s activities are tracked in log tables accessible via screen and reports.
Sorting and filtering options allow the users to personalize reports.
All reports can be exported under CSV, Excel, PDF …
TECHNICAL ASPECTS
J2EE (Java) technology is recognized as one of the preferred development technologies nowadays and offers many benefits, such as
integration; Scalability of the system can be achieved through load balancing and clustering. The user access to the system is done through an Internet browser.
Main characteristics of the system are:
Easily Integrates in all environment and easily interfaces with other existing systems.
Offers powerful and efficient search and investigation functions.
It easily adapts itself the bank needs.
Manages all financial flow: international transactions, payments/ national transfers …
It integrates itself into SWIFT Alliance Access platform to be able to control all incoming and outgoing messages.
Supports a large number of connectors such as files, database, IBM MQ, Web service, sockets …) and any other text format (plat, XML, Excel, SWIFT …).
ABOUT SWALLOW TECH
Swallow Tech is a leading provider of software solutions to the financial services industry. Trading since 1984, we have branches in London (Head Office), Singapore, India, Brussels, Lisbon and several agents around the globe. Our customer base extends to
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more than 150 customers, with installations ranging from a single user set-up through to global processing hubs with 400+ concurrent users. Swallow Tech offers a range of integrated solutions that ensure the highest levels of ‘straight through processing’ (STP) and operational efficiency, whilst minimizing risks and costs.
SwallowTech 378 Chaussée de Bruxelles, B-1410 Waterloo, Belgium Ph: +32 2 385 14 65, Fax: +32 2 385 17 43 [email protected] www.swallowtwch.com
CubeIQ Ltd. 78 Vyzantiou St., 14234, Nea Ionia, Attica Greece Phone: +30-210-9530242, FAX: +30-210-6255672 Email: [email protected], web: www.cubeiq.gr , www.amlinfo.eu