Risk & Compliance

Challenges

  • Inflexibility. Current AML systems are unable to keep up with the changes necessary to adapt to evolving and rapidly changing AML risks.
  • System limitations. Rules-based systems are inadequate and cannot support segmented monitoring of customers and peer groups or produce cross-channel views of illicit behavior.
  • Lack of integration. Nonintegrated systems and processes mean little to no sharing of information about customer risk among systems.
  • Resource constraints. There aren’t enough analysts available to investigate everything that needs to be investigated, so many instances of fraud may go undetected.
  • Inadequate monitoring systems. Current monitoring systems don’t cover an institution’s unique risks and often fail to address vulnerabilities like willful blindness.
  • Narrow view of risk. Current risk indicators are often based solely on recent transactions and do not take historical behaviors and expected activity into consideration.

How can we make sure that our anti-money laundering efforts are keeping up with regulatory requirements?

YOUR GOAL: Decrease regulatory risk, reduce false positives, increase efficiency In the decade since 9/11, financial institutions worldwide have invested heavily in best-of-breed anti-money laundering (AML) monitoring solutions. In fact, an institution’s AML program is one of its most scrutinized risk management functions. Institutions, trade groups and regulatory bodies continue to recognize the need to integrate data and pro¬cesses from security, fraud and compliance functions to form a more efficient platform for managing financial crimes risk.

White collar crimes have increased in recent years, at least partly in response to economic pressures caused by the recent financial crisis. The economic crisis also has caused many institutions to focus on capital liquidity and credit risk exposures, and there is renewed regulatory emphasis on improved due diligence, monitoring, investiga¬tion and regulatory filing practices.

Our Approach

Banks seek end-to-end AML capabilities that will help them integrate data and knowl¬edge about suspicious activity across the enterprise. We approach the problem by delivering software and services to help you:

  • Provide unmatched depth of analysis in your AML program by incorporating all institutional knowledge – including past customer behavior, expected behavior and known CIP information across all accounts.
  • Guard against system obsolescence with a proven data models that support transaction type, product, service, channel, account, customer and household dimensions, as well as the ability to import new data feeds.
  • Reduce false positives and enhance investigator performance by applying scenarios and risk factors to transactions and automatically generating alerts that are subjected to additional processes – e.g., suppression, risk scoring and routing – so investigators can focus on high-risk events rather than chasing all simple alerts.
  • Improve the effectiveness of investigations with an automated risk classification process that risk-ranks alerts based on every customer transaction across every account and makes available all supporting data in the decision process.
  • Rapidly aggregate alerts into a case for further investigation using a Web-based investigation interface that supports the management, investigation and reporting needs of AML analysts and investigators, and automatically documents and retains actions pertaining to a case for audit or regulatory review purposes.
  • Gain more insight into trends in customer behavior by using business analytics to generate ad hoc queries and reports or powerful data mining capabilities to analyze alert and case aging, analyst productivity and high-risk activities.

The IBM Counter Fraud solution also includes the ability to develop what-if analysis through predictive analytics modeling interface that lets you develop customized models to further enhance your risk analysis.

THE ALPINE & IBM COUNTER FRAUD DIFFERENCE: An AML solution tailored to your unique risks

Regardless of whether your institution chooses to integrate fraud, security and/or com¬pliance functions, the IBM Counter Fraud solution has been designed with context computing in mind to exploit data and information from your fraud and security systems to reduce technology and investigation costs.

With Alpine & IBM, you get:

  • Transparency. With IBM, you can easily understand AML monitoring processes. All scenarios and risk factors are clearly documented to explain the business logic used to generate work items, and contextual “red flags” indicate why one event is consid¬ered riskier than another.
  • Adaptability. The IBM solution is adaptable to your institution’s individual risk profile. Scenarios and risk factors are derived directly from the bank’s AML risk assessment and can be easily changed as your institution’s risk exposures change.
  • Depth of coverage. While a bank’s AML program is typically measured by its ability to capture known suspicious activity, the IBM solution employs processes that go beyond traditional parameter-driven, rules-based monitoring systems and use more of your institution’s own knowledge to identify potentially suspicious behavior.

IBM also provides a centralized data repository that lets you manage multiple subsid¬iaries from a central location. This means monitoring more risks with fewer redundant hardware resources while ensuring that data governance and compliance policies are followed. With a single, consistent enterprise data warehouse, you can also add on other applications (e.g., enterprise risk) as your needs grow and change.

Are you interested in learning more?

Contact us to discover how help you eradicate your fraud!