FinCraft - Anti Money Laundering Solution by Nelito
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Transcript of FinCraft - Anti Money Laundering Solution by Nelito
Table of contents
Business drivers 4
Money Laundering Overview 5
Risks associated with laundering 8
FinAML overview 9
Solution architecture 12
Technology and software stack 14
Customization 15
Nelito value proposition 17
© Nelito Systems Ltd. 2013 2
Our Commitment
© Nelito Systems Ltd. 20153
“Solutions that Perform”
We solve business problems of our clients through solutions
based on customer involvement, deep domain knowledge,
innovative technologies and personalized service support
We deliver what we commit
Corporate Snapshot
© Nelito Systems Ltd. 20154
Head Quartered at Mumbai
45+ Service Locations
800+ Professionals
100+ Banking Clients
• BFSI Focused Solutions with own IPR• Products and product based services in the area of Transaction and Payment
Systems, Analytics and DW, Mobility & e-Governance• Leadership position in Automated Data Flow (ADF) MIS vis-à-vis compliance to
Central Bank of the country• Providing Manpower with varied Professional IT Skill sets to Banking and Non
Banking organizations in India & International locations.
Partners
© Nelito Systems Ltd. 2015
5
Offerings Portfolio :- Products
Mobility
Transaction & Payment Systems
• Data Quality
• Cleansing
• Classification
• Enhancement
• Transaction:
• FinCraft CBS
• PACS
• SACOS
• AML
• Reconciliation
• LMS
• Mobile Banking
• Internet Banking
• Door Step Banking
• E-KYC and
Customer On-
Boarding
• CTS
• NACH
• SWIFT
• IMPS
• DBT
• ABPS
MobilityTransaction & Payment Systems
Analytics&
DW
Payment systems
© Nelito Systems Ltd. 2015
6
Offerings Portfolio : Services
Mobility
Transaction & Payment Systems
• Customer On-Boarding services
• Card management services
• Reconciliation services
• Customer identification services
• Financial inclusion• NPA monitoring
and management
• BPO Services• IT Infrastructure
Management Services
• Professional Consulting Services
• 3rd Party CBS Implementation and Roll out Services
• SAP BO• IBM Cognos• Data quality
services• Data enrichment
services• MIS
• CTS• MMS• SWIFT services
Data management
services
IT Services Transaction management
services
Payment management
services
Customers
Other Solutions and Services e-GovernanceInternational
8
© Nelito Systems Ltd. 2015
Hutch Telecom Sri Lanka
Automatic verification of cases against scenarios provided by IBA/RBI
Identification of customers
Need for verification of customers against published lists
The monitoring of transactions and reporting of suspicious activity
To comply with the stringent procedures laid out by the RBI and other
regulatory bodies
© Nelito Systems Ltd. 2013
9
Business drivers
Our Commitment
© Nelito Systems Ltd. 201510
“Solutions that Perform”
We solve business problems of our clients through solutions
based on customer involvement, deep domain knowledge,
innovative technologies and personalized service support
We deliver what we commit
Corporate Snapshot
© Nelito Systems Ltd. 201511
Head Quartered at Mumbai
45+ Service Locations
800+ Professionals
100+ Banking Clients
• BFSI Focused Solutions with own IPR• Products and product based services in the area of Transaction and Payment
Systems, Analytics and DW, Mobility & e-Governance• Leadership position in Automated Data Flow (ADF) MIS vis-à-vis compliance to
Central Bank of the country• Providing Manpower with varied Professional IT Skill sets to Banking and Non
Banking organizations in India & International locations.
Partners
© Nelito Systems Ltd. 2015
12
Offerings Portfolio :- Products
Mobility
Transaction & Payment Systems
• Data Quality
• Cleansing
• Classification
• Enhancement
• Transaction:
• FinCraft CBS
• PACS
• SACOS
• AML
• Reconciliation
• LMS
• Mobile Banking
• Internet Banking
• Door Step Banking
• E-KYC and
Customer On-
Boarding
• CTS
• NACH
• SWIFT
• IMPS
• DBT
• ABPS
MobilityTransaction & Payment Systems
Analytics&
DW
Payment systems
© Nelito Systems Ltd. 2015
13
Offerings Portfolio : Services
Mobility
Transaction & Payment Systems
• Customer On-Boarding services
• Card management services
• Reconciliation services
• Customer identification services
• Financial inclusion• NPA monitoring
and management
• BPO Services• IT Infrastructure
Management Services
• Professional Consulting Services
• 3rd Party CBS Implementation and Roll out Services
• SAP BO• IBM Cognos• Data quality
services• Data enrichment
services• MIS
• CTS• MMS• SWIFT services
Data management
services
IT Services Transaction management
services
Payment management
services
Customers
Other Solutions and Services e-GovernanceInternational
15
© Nelito Systems Ltd. 2015
Hutch Telecom Sri Lanka
Money Laundering is the process by which illegally gained money is
converted to clean assets thus making it hard to trace a path back to the
origin of the proceeds. It involves:
Placement – Deposit of illegal proceeds in financial institution.
Layering – Use of complex transactions to disguise the audit trail and
provide anonymity
Integration – Money is now integrated into the legitimate financial
system and is assimilated with all other assets in the system.
© Nelito Systems Ltd. 2013
16
Money laundering overview
© Nelito Systems Ltd. 2013
17
Money Laundering Overview
Ease of detection highDifficult to detect
Illegal Money Bank
Offshore account A
Offshore account C
Offshore account B
Legal Money
Japan account
Offshoreaccount
Expensive purchases
INTE
GR
ATI
ON
Investment in business
London Account
Investment in business
PLA
CEM
ENT Indian
account
LAYE
RIN
G
• Money Laundering Techniques Employed• Payable through accounts• Loan back arrangements• Connected Accounts• Forex Money Changers• Credit / Debit cards• Companies Trading and Business Activity• Correspondent Banking• Lawyers, Accountants and other
Intermediaries• Misuse of Non Profit Organization
• Legal sources of Terrorist funding• Collection of Membership dues• Sale of Publications• Cultural and Social Events• Door to door solicitation within community• Appeal to wealthy members of the
community• Donation of a portion of Personal Savings
• Illegal sources of Terrorist funding• Kidnap and Extortion • Smuggling • Fraud including Credit Card fraud • Misuse of non-profit organization and
Charities fraud • Thefts and Robbery • Drug Trafficking
FinAML is an enterprise scale real time monitoring and surveillance
solution for financial services organizations
Uses rule based surveillance engine that monitors current
transactional data, non transactional data and historical data for
suspicious trading patterns.
Extensive library of analytical foundations and detection models helps
organizations to be compliant with AML regulations
© Nelito Systems Ltd. 2013
19
FinAML
The following broad scenarios are integrated into FinAML but it can
be customized for other purposes as well:
© Nelito Systems Ltd. 2013
20
FinAML overview
Trading
• Insider trading
• Front running
• Tail gating
• Wash trades
• Price ramping
• Painting the tape
• Layering
• Trading volume spike
• Trading price spike
• Passive and large orders monitoring
• Excessive cancel and corrects
• Frequent changes to instructions
Banking
• Excessive ATM Activity
• Burst in beneficial activity
• Circulation of funds
• Excessive cash/cash-equivalent transactions
• Frequent loan activity
• Monitoring transactions of Politically active persons (PEP), Non-Cooperative Countries or Territories (NCCT), FATF blacklist countries
• Early repayment of loans
KYC
• Frequent client data changes
• Frequent ownership structure changes
• Suspicious events after change in client data
• Screening of accounts with incomplete KYC data
• Hidden client links
• Logical client links
Capability to generate alerts on all 61 scenarios prescribed by IBA/RBI
Highly customizable and allows generation of future scenarios
Ability to provide PAN verification of customers
Allows for the automatic filing and sorting of STR alerts based on different
parameters
Supports all popular formats of reporting
Repository for generated STR alerts
Provides audit trails for the activities of all users
Provides risk categorization of all the customers
Exercises extra due diligence for high risk customers
Provides different reports regarding deficiencies in KYC and other features
© Nelito Systems Ltd. 2013
21
Solution functionality
© Nelito Systems Ltd. 2013
28
Customer value proposition
• Eliminate on manual processes, minimizing risk of error
• Reducing costs
• Freeing staff from routine number-crunching, redeploying into higher-value activities
Operational
Excellence
• Greater Financial Control
• Standardization of methodologies around the enterprise
• Able to set risk thresholds, data access and other controls centrally
• Better compliance with regulatory requirements
Risk Mitigation
• Timely real time Monitoring
• Faster Processing– a million transactions reconciled in 2.39 minutes (as tested by HP)
• Intelligent Surveillance Engine to detect and report focused violations.Performance
• Enterprise Solution, seamless integration with virtually any Upstream & Downstream Systems
• Highly flexible and Customizable via Configuration
• Customer Specific Customization via Configuration for any data structure, business rules and reporting
Fast Implementatio
n