FinAMLOR

What is Money Laundering?

Money laundering is the process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity, originated from a legitimate source. It is a crime in many jurisdictions with varying definitions. It is a key operation of the underground economy.

A business taking large amounts of small change each week needs to deposit that money in a bank. It its deposits vary greatlyfor no obvious reason this can draw suspicion; but if the transactions are regular and roughly the same the suspicion is easily discounted. This is the basis of all money laundering, a track record of depositing clean money before slipping through dirty money.

Its definition is often expanded by government and international regulators to mean any financial transaction which generates an asset or a value as the result of an illegal act, which may involve actions such as tax evasion orfalse accounting or economic good.

The Act

The Prevention of Money-Laundering Act, 2002 came into effect on 1 July 2005. Section 12(1) prescribes the obligations on banks, financial institutions and intermediaries (a) to maintain records detailing the nature and value of transactions which may be prescribed, whether such transactions comprise of a single transaction or a series of transactions integrally connected to each other, and where such series of transactions take place within a month; (b) to furnish information of transactions referred to in clause (a) to the Money Laundering Control Officer or any other designated officer within the intermediary within such time as may be prescribed and to (c) verify and maintain the records of the identity of all its clients. The Principal Officer would facilitate onward reporting of suspicious transactions to the regulators under the Acts.

Risk

Organizations face risk by not knowing enough about their existing and prospective customers. Consequences can include regulatory fines, tarnished corporate image and increased losses associated with fraud, all of which can erode trust and impact the bottom line.

Prevention of Money laundering .How?

An effective Anti-Money Laundering solution will help protect bank’s reputation through compliance, constant monitoring and reporting of suspicious activity. There is also the need to comply with regulatory demands by providing an enhanced level of internal controls and governance, and these are just some of the factors that go into the making of aworld-class AML solution.

Finacus gives a Solution

FinAMLOR provides a comprehensive Anti-Money Laundering software solution that includes: transaction monitoring, intelligent detection tools, watch list filtering, alerts investigation, case management, workflow, regulatory reporting (STR), and management reporting. It is designed to help Banks effectively conduct due diligence and comply with government regulations. It gives a powerful combination of anti fraud, anti money laundering and business intelligence utilities. The solution offers robust analytics in the Know Your Customer and Transaction Analysis segments.

Benefits:

• Help financial institutions meet regulatory requirements Improve risk protection, streamline compliance operations, user friendly system reduces manpower and training costs and maximizes productivity and profits
• Deliver better detection by combining behavioral profiling and rules management
• Improve efficiency through a configurable and robust workf low and alerts management system that allows compliance teams to process cases faster Besides generating all statutory reports and Suspicious Transaction Reports, F1nAMLOR also monitors and crosschecks customer and non- customer details for any possible violations of regulatory requirements. Some of the salient features embedded in the solution, such as identifying rogue customers and analyzing transactions according to threat perceptions, allow Banks to notice trouble early and correct it before any harm is done.

Features

Know Your Customer (KYC)

• Customer Due Diligence: Ability to capture all mandatory customer and related information Jurisdictions: Ability to capture citizenship and residence information for individuals as well as domicile and market-related information for organizations
• Identification: Support for user-defined identification requirements based on the individual or organizations Verification: Support for a range of verification options for individuals and organizations
• Risk Scoring and Classification: User-configurable AML risk scoring and risk classification including facility to allot weightings
• Reporting: Comprehensive compliance reporting, including Suspicious Transactions Reporting (STR), Threshold Transaction Reports (TTRs), International Funds Transfer Reports (IFTSs) and Sanction and Watch List Reports.

Know Your Transactions (KYT)

Transaction Monitoring: The Compliance Desk combines rule-based monitoring methods as prescribed by SEBI Act 1992 and PMLA 2002 with user profiling techniques in order to detect suspicious activity and potential money laundering across customers, products, accounts and transactions. Case Management: Just four simple steps are all that is required to administer alerts (detect, investigate, manageand report)

An end-to-end Anti-Money Laundering (AML) solution, FInAMLOR enables you to apply risk based approach to monitoring customer behavior for suspected criminal financial activities via automated processes. In addition, the solution supports industry best practices for monitoring and reviewing, giving you a reliable way to protect your business reputation. Armed with comprehensive reporting and query capabilities as per regulatory requirements, FInAMLOR also stores compliance rules and flags any violation of these rules for follow-up.