AML –Anti-money laundering

SECURE COMPLIANCE – AUDITING AGAINST MONEY LAUNDERING GUIDELINES

alseda AML is a software solution for checking financial transactions against anti-money laundering guidelines. Money laundering and compliance officers can use the solution to independently adapt their audit strategy to new legal requirements and thus efficiently meet anti-money laundering requirements.
The alseda AML solution follows the risk-based approach to the prevention of money laundering and terrorist financing.

CONSIDERATION OF NATIONAL AND INTERNATIONAL GUIDELINES

A comprehensive set of rules and predefined scenarios takes into account national and international legislative requirements and includes an institution’s business, customers and relationship networks in the analysis. Fulfilment of the legal requirements for money laundering according to the directives:

• EU Money Laundering Directives
• FATF 40+9 Recommendations
• USA Patriot Act
• Bank Secrecy Act

AUTOMATIC CREATION OF CUSTOMER PROFILES

The Know-Your-Customer (KYC) principle obliges banks and insurance companies to identify their customers before the start of a business relationship and to verify them again and again later. The alseda AML solution offers the dynamic creation of customer and account profiles for this purpose. With a targeted long-term view, circumstantial evaluations can be built up based on different characteristics of a customer or account and used by the compliance department for analysis and case processing. When using the SAP BP business partner, it is not necessary to build up a separate database. The alseda AML solution directly accesses the existing customer database.

THRESHOLD ANALYSIS

As customer behaviour is subject to constant fluctuations, the threshold values for financial transactions per customer are always checked and automatically adjusted by the system if necessary. The consideration of historical comparative values can be individually adjusted by the money laundering officer. PEP LISTS In addition to the risk lists and profiles, it is also possible for the software user to automatically check his business partner or customer portfolio, as well as all business partners involved in a transaction, against the official financial sanctions and PEP lists. If a hit is found during real-time reconciliation, the entire transaction is immediately flagged as a suspected money laundering case.

DYNAMIC ANALYSIS OF FINANCIAL TRANSACTIONS

A dynamic risk classification is also carried out for financial transactions. Depending on various factors, transactions are classified into risk classes. Unusual transactions and suspicious transaction patterns are detected by the AML solution. Taking into account the individual risk classification and the information from the KYC profile, the transactions are analysed. In this way, statements can be made as to whether the type, amount or origin of a transaction is unusual and thus relevant to money laundering.

The classification first distinguishes between different types of business relationship or products: Current accounts, securities, loans or cards. Different products in combination with different, further characteristics, such as the industry or the legal form of a business customer, also imply a generally deviating business behaviour. For example, high cash inflows and outflows are a matter of course for corporate accounts. For private accounts, on the other hand, this is not the case. High cash flows would be more conspicuous here.

ANALYSING TRANSACTIONS IN A RISK-ORIENTED WAY – IDENTIFYING MONEY LAUNDERING SCENARIOS

The core of the alseda AML Solution is an intelligent analysis framework that brings together all available data on customers, transactions and from the past and evaluates it with regard to various risk scenarios. The high quality of the identification of unusual transactions results from the continuous optimisation of the applied logic in order to reliably identify unusual transaction patterns and transactions. Taking into account the individual risk classification and the information from the KYC profile, the transactions are analysed. In this way, statements can be made as to whether the amount of a transaction or deposit is unusual. Furthermore, the alseda AML Solution recognises suspicious transaction patterns such as.

MONEY LAUNDERING AUDIT RULES – CREATED QUICKLY AND EASILY

Easy maintenance and updating of rules is ensured by an expandable set of rules. Audit rules for identifying new money laundering offences or for meeting current legal requirements can be created or modified independently by the money laundering/compliance officer. Standard audit rules for compliance with current legal guidelines are already available in the system. On an iterative basis, various key figures on the business activities of all parties involved in a transaction, as well as on the transaction itself, are collected. These key figures are collected and risk values are calculated on the basis of them, which make it possible to assign them to a suspicious case. Key figures are, for example, the average number of transfers, direct debits, cash deposits and withdrawals within the last 12 months. Compliance staff have the option of making individual settings for the key figures used and their weighting in relation to the classification of suspicious cases. The settings for this are user-friendly and intuitively designed.

EFFICIENT MONITORING AND PROCESSING

Suspicious cases from the audit against the money laundering guidelines are filed in the central compliance cockpit of the alseda solution. The suspicious cases can then be checked and processed further there. A release functionality can also be used here if it is intended that each suspicious case must first be released by another employee after it has been processed by a compliance employee.

ACTIVE ANTI-CORRUPTION

The alseda AML solution actively supports the fight against corruption in continuous business transactions through its PEP list functionality. All parties involved in a transaction are checked against the official PEP lists in real time. Any suspicious cases are directly entered into the Compliance Cockpit of the alseda AML Solution for further processing.

AUDIT-PROOF LOGGING AND HISTORISATION

The alseda AML solution supports the audit-proof recording of all checks, work steps and settings on the system. In this way, it is possible to trace at any time how and with what justification the decision to deal with an incident was made. Standard SAP archiving objects are provided for archiving the protocols.

EVALUATIONS AND REPORTING FUNCTIONALITY

Numerous evaluations on payments, customers, countries, etc. allow ad-hoc research beyond the automatic checks stored in the alseda AML solution. Evaluations can be displayed easily and clearly with the help of various graphic templates, whereby the key figure values can be freely selected, e.g. as a bar or pie chart.

TECHNOLOGY

The alseda AML solution can be installed on a standard SAP NetNetweaver platform or on a SAP HANA platform. Due to the SAP HANA technology, very large amounts of data (big data) can be analysed in a very short time. An own database is not necessary for the alseda AML solution. The application is multi-client capable and allows multilingual interfaces.

alseda AML – The advantages at a glance

• Fulfilment of the legal requirements for anti-money laundering and counter-terrorism
• Easily expandable set of rules for an efficient money laundering audit strategy
• Predefined audit rules to meet legal requirements
• Know Your Customer (KYC): Continuous risk assessment of the customer relationship
• Central compliance cockpit for complete documentation and investigation of money laundering incidents
• Creation of customer profiles: Transactions that deviate from the customer’s usual transaction behaviour are identified Link analysis for the visualisation of money laundering networks
• High-performance evaluations, as they can also be used with SAP HANA (in memory computing)
• Fulfilment of the retention obligation through audit-proof documentation of all actions, activities and decisions
• Support of the anti-corruption fight by matching all individuals who are part of transactions and deals with the current PEP lists
• alseda AML can be seamlessly integrated with other modules of the alseda Compliance Suite.