Anti-Money Laundering – Role of Technology Vasant Godse. L&T Infotech Ltd. - Powai. October 13, 2006. IIBF Seminar on ‘Anti Money Laundering & Know Your Customer’ Guwahati. Background.
L&T Infotech Ltd. - Powai
October 13, 2006
‘Anti Money Laundering
Know Your Customer’
Real estates builders,
Others, who allow their businesses to be used by someone to launder the proceeds of a crime.
(23 industries covered in USA)
Who is watching?
European Union Directives
USA Patriot act
Wolfsburg Principles on Private Banking and Correspondent Banking
All countries’ regulatorsPlayers/Detectors
Customer Acceptance Policy
Customer Identification Procedures
Monitoring of Transactions; and
1. Know your customer and correspondent.
2. Monitoring the transaction flows.
(Correspondents yet to be covered in India)
Bank must locate, extract, warehouse and assimilate data Solution that can evaluate transactions at more details
Single view on customer activity
Any solution for AML compliance has to address to the
Manage customer account opening, acceptance & ongoing maintenance
Risk based customer modeling
Risk class based on risk factors and scores
Links company wide customer acceptance documentation requirements
Stores, manages and queries electronic documents
Maintains & monitors details for customer
Profiling technique to evaluate customer & transaction
Creates customer behavior pattern
Tool for reviewing suspicious activity
Real time transaction enquiry tools
Automates creation and filing of suspicious activity
Comprehensive audit trailTechnology Offers
Electronic workflow from receipt of information to response back
Automated process to import the request for information
Flexible search algorithm
Electronic filing of responses back to inquiring parties
Comprehensive security control to ensure confidentiality
Detection of Black listed customer
Detects violations consistently across enterprise for a multitude of global sanctioning bodies
Real time, intra-day interfaces to all at-risk business system
Reduce expensive due diligence
Provide automatic sanctioned party updates
Integrates with multiple disparate business systemsTechnology Offers
Source: Celent, Trends in Anti-Money Laundering 2006.
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