Lazo ILIJOSKI ASEBA AML Anti-Money Laundering Solution.
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Transcript of Lazo ILIJOSKI ASEBA AML Anti-Money Laundering Solution.
Lazo ILIJOSKI ASEBA AMLAnti-Money Laundering Solution
Agenda
Necessity of AML solution & Trends in AML
Major functional features
System Architecture
Overview of system modules
Business process for analysis of clients and their transactions
Case studies
The benefits of the ASEBA AML system
Why ASEBA AML?
Necessity of AML solution & Trends in AML
Global trends
State regulations
Reputation risk
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Solution
Reputational risk
State regulations
International standards
ASEBA AML - Major functional features
Integrated End-To-End solution for Money Laundering Detection and Prevention
Independent solution from the core banking system Risk profiling of clients and transactions Initial setup with more then 90 indicators for risk detection No limit of rules & indicators for risk determination Creation of new indicators and scenarios without vendor assistance Graphical interpretation of comparison of analytical data Sanctions list management Delivering accurate, prioritized alerts directly to desktop application
in real time Generating specific reports imposed by local regulatory authorities
and reports based on defined suspicious activity criteria Integration with external systems by using web service layer Integrated document management tool Audit Trail KYC Effect
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Modules of the AML System
Data Transfer Module
Sanction Lists Management Tool
Black list, white lists, custom sanction lists, on-line identification and control of transactions
Module for on-line authorization and identification
Risk Scoring Engine:
Clients & Transactions risk profiling module;
Management of Peer Groups;
Sub-module for creating custom indicators;
Sub-module for custom scenarios;
Sub-module for analyzing transactions relationships;
Ticketing System
Report & File Generator
Document Management Module - Exchange-Archive-Search Module for generated files and reports
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Logical Architecture
ASEBA AML System
Risk Scoring Engine
Customer Risk Profiling
Peer Groups Module
Transaction Risk Profiling
Custom Indicators
Scenarios Management
Analysis of transactions relationships
Sanctions List
Management Tool
Module for on-line authoriza-
tion and identification
Report & File
Generator
Document Management
Tool
Ticketing System
Data Transfer Tool
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System Architecture
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AML System
Database
Core Banking System
Module for importing data
Clients Accounts Transactions
Blacklists, internal lists
& PEP
Module for on-line authorization and identification
Report & File Generator
Module for exchanging and archiving files
Signing, verification &
searching through files’ content
Audit & logging of all activities
Module for scoring of transactions
Custom Indicators Module
Customer List Management Tool
Ticketing System
Custom Scenarios Module
Module for analyzing transactions relationships
Module for scoring of clients
Peer Groups Module
Enterprise Architecture
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•Control against blacklists•Executor details•Behalf of transaction
Performing Transactions
•Controlling mandatory fields and data validation•Gathering single transactions even they have passed through several steps within their life-cycle
Data Transfer
•Transactions Grouping•Re-creating groups of previously transferred transactions
Analysis of relations of transactions
•Risk Scoring of Clients and Transactions•Re-scoring of regrouped transactions•Automatically creating tickets (cases) for entities with high risk
Risk Scoring
•Review of scoring results•Result comparison•Manually creating tickets for suspicious entities
Analysis
•Mark as suspicious/non-suspicious•Submission of report to FIU (OPMLFT)•Storing into risk lists of clients
Final action
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Business process for analysis of clients and their
transactions
Data Transfer Module
Categories of data that is transferred from Core banking system to AML System
Clients Individuals
legal
Accounts
Transactions
Related persons Every type with weight factor
Reverse relationship
Level of relation
Collaterals
Quality of data most important for analyses
Mail notifications
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Retail
Cms
Loans
International payments
Domestic payments
Fast transfer of money
Exchange office....
Scoring Engine
Designed to calculate risk factor for transactions and clients
Possibility for performing scoring by various risk schemas
Flexible for adding new indicators and rules or adjusting existing ones;
Creating new indicators by using a wizard;
Determination of risk factor based on more than 90 different rules and indicators
Possibility for mass risk-rating of all clients
Possibility for risk-rating of single client on demand
Interactive view and comparison of results of performed scorings
Ability to detect a broad range of money laundering scenarios
Decreasing number of detected false-risk cases by tuning weight factor for each of the indicators
Ability to perform testing and calibration of the schema by “Training Application”
Ability to integrate with external systems through web service layer
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FUNCTIONALITIES
• Daily scoring
• More than 40 rules & indicators
• Easy parameterization
• Automatically creation of tickets
• Influence of risk factor to clients
Risk factor of transaction
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Risk factor of transaction
Amount
Payment basis
Part of a group
Statistical deviation
Dormant or new
account
Client in a sanction
list
Country risk
...
INDICATORS
Analysis of transactions relationships and creating groups of related transactions
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Review of scoring results of transactions 1/2
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Review of scoring results of transactions 2/2
FUNCTIONALITIES
• Risk profiling of clients
• Scoring on predefined period
• More than 40 rules & indicators
• Easy parameterization
• Deviation of client
• Graphical view of customers
• Automatically creation of tickets
Risk factor of clients
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Risk factor of clients
Origin
Cash transaction
Freq. specific
transactions
Risk factor of
transaction
Risk Of products
Activity of entity
Related persons
Sanction Lists
...
INDICATORS
Review of scoring results 1/3
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Review of scoring results 2/3
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Review of scoring results 3/3
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Graphical review of scoring results 1/3
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Graphical review of scoring results 2/3
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Graphical review of scoring results 3/3
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Ticketing System
Built-in functionalities for opening, assigning and reviewing different types of tickets
Assigning many and various actions that should be taken until ticket is not closed
Possibility for creating new custom actions by system administrators
Automatically creating tickets for entities which score is higher than the threshold set by the Bank
Attaching of related documents to the ticket and browsing through their content
Generating report with conclusion about the performed analysis
Tracking case history
Mail notifications for new ticket assignment and reminding for due date
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Tickets Review
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Customer Lists Management System 1/2
Management of blacklists, internal and white sanction lists
Import of EU, UN & OFAC lists No extra costs for defining and
loading new types of blacklists No limit of number of lists Searching under various criteria:
Parts of name, Similar aliases, Similar names or address, Different character sets, Transpositions, Common language differences, Common errors in writings.
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Customer Lists Management System 2/2
Customer screening – under several methods based on Fuzzy Logic:
Trigram Like Levenshtein SoundEX Metaphone Chapman Length Deviation…
Show results above minimum matching percent specification
Proposed actions based on searching results
Possibility for cross-checks of all customers against blacklists
Possibility for defining different type of alerts for different sanction lists
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Transaction screening if there is no possibility for tight integration of external system to AML system
All functionalities can be used by external legacy systems by sending HTTP Requests or invoking web services
Module for on-line authorization and identification
On-line control of transactions
Online identification of client against sanction online lists
Monitoring of SWIFT messages against blacklists:
Scanning of all international payments against blacklists, PEP and other sanctions lists
Proposing action according to percent matching
Risk of transaction
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On-line identification and control of transactions
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Report & File Generator
Full coverage of all legal requirements defined for reporting in several countries
CTR report- cash transactions above limit, related cash transactions above limit Loans in period Borrows in period Additional data for client STR report
Automatically archiving in document management system Flexible definition of new file/report requirements - Report and file
generator Allows generation of various custom reports by technical personnel of the Bank
Allows for presentation of reports in different formats:
XML files Tabular overview Excel reports HTML reports
Document Management Tool
Key features:
Automatic sending of files Archiving of sent and received files – electronic archive Ability to sign documents before sending them Simple and quick access to exchanged documents Logging of individual activities Fast and reliable search engine of data Integrated with ticketing system Relations between documents
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Preview of archived files
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Module for creating custom indicators and scenarios
Designing, creating and testing custom indicators by using a wizard
No need assistance from technical person
Possibility to use two types of operators:
Comparative (=, >, >=, <, <=, <>, LIKE);
Aggregate (Sum (absol. values), Sum (+/-), MAX, MIN, Count).
Retrospective analysis of custom indicators
Tightly integrated to designing tool for scoring schemas (Smart
Modeler)
Enhanced monitoring based on custom scenarios
No limit on number for adding new scenarios
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Editor for creating custom indicators
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Technology Framework
Windows Server family 2003/2008 OS
SQL Server 2005/2008
SQL Server Integration Services
Internet Information Services
.Net Framework 3.5 SP1
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Case Studies
Ohridska Banka AD Ohrid (Societe Generale Group) Core Banking System: PUB 2000; Database: SQL Server 2005 AML System database: SQL Server 2005; OS: Win Srv 2k8
TTK Banka AD Skopje Core Banking System: PUB 2000; Database: SQL Server 2008 AML System database : SQL Server 2008; OS: Win Srv 2k8; Virtual Environment
Stopanska Banka AD Bitola Core Banking System: PUB 2000; Database: SQL Server 2005 AML System database : SQL Server 2008; OS: Win Srv 2k8
Centralna Kooperativna Banka AD Skopje Core Banking System: BIIS (DataMax); Database: Oracle 10g AML System database : SQL Server 2005; OS: Win Srv 2k3
Univerzal Banka AD Beograd Core Banking System: PUB 2000; Database: SQL Server 2005 AML System database : SQL Server 2008; OS: Win Srv 2k8 ; Virtual Environment
Investiciono-Komercijalna Banka DD Zenica Core Banking System: PUB 2000; Database: SQL Server 2005 AML System database: SQL Server 2005; OS: Win Srv 2k3
There are two more ongoing implementations
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The benefits of the ASEBA AML system
Effectively assisting banks to comply with AML regulations in different
countries and international standards
Possibility for upgrade and implementation of changes in business rules
without vendor’s assistance
Risk profiling of customers in any time
Prediction of customers behavior and achieving KYC (Know Your Customer)
effect by using comprehensive user interface
Historical data for customers risk deviation
Keeping records for risk cases and those that are reported to Finance
Intelligence Unit and appropriate treatment of the most risky customers
On-line monitoring of transactions and preventing illicit activities
Customer screening against sanction lists
Protection of cooperation with entities that are on blacklists
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Why ASEBA AML?
Fully compliant with legislative requirements Generation of report according to OPMLFT specifications
Proper transaction data interpretation
Turnkey solution Minimized necessity of technical personnel for configuring AML system;
Solution is easy expandable and can be easily integrated to external systems;
Future customization of the system without vendor assistance:
Creation of new and calibration of existing scoring schemas;
Creation of new scoring rules and indicators (even without help from IT staff);
Creation and customization of scenarios;
Creation of new customer lists;
Creation of new rules for transactions grouping.
Integrated environment Compatible authorization management
Possibility for single sign-on system
Integration with external Audit system
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