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The
functionality of FINANWARE
Money Laundering Prevention & Control
specializes in providing the analysis and control
tools facilities required for this activity, based
on the institution's customer information, the
financial products and services they use and their
transactions.
The information
gathered by regulatory agencies throughout the
world shows that the laundering of assets deriving
from illicit businesses amounts to more than 500,000
million dollars a year worldwide. |
Some of the most methods most used
by money launderers are: the establishment of shell
companies, smuggling of foreign exchange, investment
in insurance companies, buying of stocks and negotiable
securities in stock exchanges, overinvoicing and forgery
of invoices, use of lotteries, buying and selling of
luxury or readily transportable goods, among others.
To protect itself from the high risk
of losing its reputation and image due to this problem,
the financial sector, in conjunction with regulatory
agencies, has designed mechanisms to prevent the channeling
of resources from illicit activities into financial
institution operations.
The role of the financial system in
detecting, preventing and repressing the movement of
illegal capitals is based on the establishment of policies
and principles for customer selection and identification,
knowledge about their business activities and operations
with the financial entity, supplemented by the adoption
of control mechanisms aimed at obtaining adequate knowledge
of their financial activities, the frequency, amounts
and capital turnover and how they are related to their
business activities.
It is therefore considered that every
financial entity must implement a system to prevent
and control asset laundering, which includes appropriate
and sufficient monitoring measures to prevent any operation
(cash, documentary, financial services or others) from
being used to conceal, manage, invest or use in any
way monies or any other assets obtained through criminal
activities, or to otherwise, give any transactions and
funds associated with criminal activities the appearance
of being legal.
The "know your customer"
concept is essential to control asset laundering so
that the solutions to support this automated function
must be centered on this process. FINANWARE™ Money
Laundering Prevention & Control bases its operation
on a corporate data model which is capable of receiving
and organizing the information relative to the customers
of a financial institution and providing details on
their operations and transactions and all the relevant
information for analysis. This information is obtained
from the different operations management support systems,
which become data input sources for the FINANWARE™ model.
| Money
Laundering Prevention & Control functions
- Single and standardized
repository containing historical and current information
on customers (baseline data, address, activity,
income bracket, etc.) and information on the products
and financial services used by them (accounts,
operations, balances, types of transactions, amounts,
detailed transactions, etc.)
- Integration of specialized components for the
statistical analysis of historical information
and projection facilities.
- Tools and facilities for the dynamic segmentation
of customers, using any available data on the
customer as discriminating criteria and measurements.
- Facilities for user generation of "ad-hoc"
queries in order to determine dynamic searches
for the information contained in FINANWARE™.
- Analysis and control of customer migration between
segments to which they were associated owing to
changes in their behavior or activity.
- OLAP-type user tools that facilitate the dynamic
analysis of information and the generation of
the charts and reports required by regulatory
agencies.
- Detection of Unusual Operations the amounts
or characteristics of which are not in keeping
with the business or income-earning activities
of the customers or which, because of the number,
amount of the transactions involved or particular
characteristics exceed the normal parameters established
for a specific market range.
- Consolidation of
operations per customer by grouping all the operations
of the same customer within the period of analysis.
- Facilities to generate warning signals regarding
information that falls outside of the defined
ranges.
- Detection of Suspicious Operations which, after
matching unusual operations with information on
the customer and the markets, reasonably leads
to considering that such operations are related
with a criminal activity.
- Management of excepted customers, that is, those
who due to their regular business operations verified
as being licit carry out multiple transactions
exceeding the control ranges for their normal
segment.
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