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AML OVERVIEW

MARCH 10, 2015

CARLOS SOVEGNI

FRAUD PREVENTION & AML SPECIALIST

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AGENDA

• General Trends

• Convergence to FCIU

• AML 3.0

• SAS Strategy

Copyr i g ht © 2015, SAS Ins t i tu t e Inc . A l l r ights reser ve d .

AML OVERVIEW GENERAL TRENDS

• Recent Enforcement Actions

• HSBC

• Banamex (Citigroup)

• Standard Chartered

• GeoPolitical

• International Wires (Drugs & Terrorism)

• Corruption

• Regulatory Pressure (US & European)

TRENDS

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AML OVERVIEW FCIU

• Fraud Prevention

• Strategy

• Operations

• AML

• Security

• Internal

• External

“FCIU”

Financial Crimes

Investigation Unit

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GLOBAL FCIU GLOBAL ROLL-UP ADDITIONAL INVESTIGATION LEVEL

AP

USA

LAM

EMEA

FCIU

Level 4

The FCIU is “Second Line”

system providing an

additional Investigation level

that looks for cross border,

cross product AML risk.

This provides a true holistic

enterprise monitoring

capability

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GLOBAL FINANCIAL INTELLIGENCE

PLATFORM (FIP)APPROACH

• CENTRAL GOVERNANCE

Summary cross-border alert

data & analytics

Monitor investigations

• REGIONAL OPERATIONS

Data / systems hubs

Monitoring unique to regions

In-country investigation teams

• “SAFETY NET”

Surf all internal / external data for

early detection of risks

FEDERATED DATA ACCESS

Global FCIU

CASE MANAGEMENT, GLOBAL MI & DASHBOARDS

ANALYTICS INVESTIGATIONSDATA MANAGEMENT

US Regional Hub ASIA Regional Hub UK Regional Hub

This allows the bank to manage their financial crime risk rather than managing the regulators

ENGAGEMENTS

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AML OVERVIEW AML 3.0

Automated Surveillance

“status quo”

“batch processing”

“known behaviors”

“structured data”

Proactive Discovery

“big data analytics”

“dynamic / in-memory”

“unknown patterns”

“unstructured data”

ANALYTICS USE CASES

• Segmentation

• Peer-Based Anomaly Detection

• Alert Prioritization and Routing

• Automated Alert Triage & Scoring

• Client Risk Rating

• Holistic Customer Assessment

• Emerging Risk Analysis

• Model Risk Governance

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UPDATE ON SAS AML APPROACH FOR TRANS. MONITORING

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UPDATE ON SAS AML APPROACH FOR END-TO-END

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OUR STRATEGY WHY SAS AML?

• Cloud Friendly

• Full Data

Populations

• Quick Impact

Assessments

• Multi-Cycle

Processing

• Effective

Challenge

• Ability to Look-

Back

• Releases every

6 Month

• Enhanced

Functionality

• Building

Templates

• Building

Effectiveness

Reporting

• Model

Documentation

• Experts

In-Memory IP Authoring Optimization

• Decision Tree

• Threaded Rules

• What-If

Simulation

• Scenario

Transparency

• Scenario

Management

• Anomaly

• Predictive

Models

• Publishing

Methodology

• Education:

“Teaching to

Fish”

• Alert Scoring &

Triage

• Piloting with a

large bank

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$100m revenue

41% growth

Fastest growth

in solutions

Federal Reserve

Internal Revenue Service

Office of the Comptroller of the Currency (OCC)

Financial Crimes Enforcement Network (FinCEN)

SAS Anti-Money Laundering™ Customers

Security Intelligence Financials

US Regulatory Presence

Analyst View

Natio

nal Secu

rity

Pu

blic Secto

r

Glo

bal Fin

ancial M

arkets

• 98 of 100 Largest

Fortune 500 Global

Banks

Business and Technology Innovation

Bank of America

Bank of Tokyo Mitsubishi- Japan

Commonwealth Bank of Australia

Huntington Bank

Santander US

TD Bank

Union Bank

Wells Fargo

SAS CREDENTIALS IN AML/CFT COMPLIANCE

“Magic Quadrant”: Data Integration,

Business Intelligence & Analytics

“Leader” in Big Data Predictive Analytics,

Enterprise Fraud Management

“Leader” Anti-Money Laundering

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SAS EXPERIENCE AML REPLACEMENT

CHALLENGES

• Heightened regulatory pressures

• Need to scale their transaction monitoring processes

• Desire to improve model risk tuning & optimization

• Current vendor used “black box” analytics

• Apply network analytics against historical investigations

to quantify nexus between AML and Fraud

SOLUTION

• High Performance AML

• Peer Grouping and Anomaly Detection

• Enterprise Case Management

• Visualization (Visual Analytics & Visual Scenario Designer)

PROFILE

• GLOBAL TIER 1 BANK

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DEMO AML + VSD + VA

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QUESTIONS?

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GRACIAS Y SALUDOS