Maintain a check on money laundering through proactive risk management and effective due diligence
A string of U.S laws including the Bank Secrecy Act (1970), and the Money Laundering Control Act (1986), the USA PATRIOT Act, 2001, the Intelligence Reform & Terrorism Prevention Act of 2004, and the FINRA AML Rule 3310, and other Countering Financing of Terrorism (CFT) laws mandate that banking and financial institutions play an active role in the war against money laundering. These institutions are required to establish effective money-laundering deterrence guidelines as an integral component of their Anti-Money Laundering (AML) program.
Eliminating money laundering however is an overwhelming task because of the large volume of global financial transactions, constantly evolving government regulations, internal procedural changes, innovative laundering techniques, and increasing inter linkages of global financial systems. In addition, money laundering schemes are backed by well-organized and technologically advanced criminal networks, and are more sophisticated and frequent, rendering the existing AML programs ineffectual. While legacy audit-based and checklists-based procedures might help review evident suspicious activities, more complex patterns of fraud cannot be detected or deciphered. Clearly, organizations cannot chiefly rely on obsolete AML programs that have been established years ago.
The best way forward for banking and financial institutions is to combine the efforts of compliance, legal, and fraud teams to establish a reliable AML compliance program, gain a holistic view of risk sound due diligence exercises which also form a critical component of the AML infrastructure.
MetricStream's AML solution provides strong internal controls, effective risk assessment, sound training for all key entities and stakeholders on the nuances and impact of money laundering, and also helps build a culture of corporate integrity, to systematically check money laundering. It also comprises advanced features and functionalities for conducting due diligence exercises to monitor the international financial ecosystem. The solution uniquely combines best practices, automated information flows, assessments and testing, and resolution activities to manage money laundering risks, thereby protecting investors and market integrity.
The solution enables proactive detection of unusual activities that may indicate laundering of illegal proceeds. It does so by aligning continuous risk identification to business objectives across business lines, products and services. Further, real business value comes from being able to optimize the case and issue management features of the solution, which enable root cause analysis, monitoring of issues and actions, and tracking issues to closure.
Key benefits of the solution include: