Financial Crimes, specifically Money Laundering & Fraud are growing multi fold with increasing complexity and volume. Impact of this is humongous across various dimensions - cost, reputational risk, regulatory risk & penalty. Organizations are investing in modernizing their Financial Crime systems leveraging broad spectrum of technologies - Artificial Intelligence, Machine Learning, Advanced Analytics & Big Data. There is growing need to have a holistic view of Enterprise-wide Risk and Compliance and navigate the evolving challenges.
Anti-Money Laundering (AML) is a particularly challenging area of regulation for banks – even more so for large, geographically diverse institutions. Failure to have adequate processes can result in massive regulatory fines. The inadvertent use of the banking system for money laundering activities is a key challenge facing the financial services industry. In response, regulatory authorities have introduced anti-money laundering (AML) regulations to detect and prevent such activities. Complying with these regulations requires banks and financial institutions to implement an effective compliance system, along with appropriate tools and systems. This, in turn, requires companies to build an effective business case for the right compliance system equipped with requisite capabilities and latest technology tools.
IDBI Intech offers an efficient, scalable, real time, platform agnostic Anti Money Laundering solution across the lifecycle of customer - Know your customer, Customer Due Diligence, Transaction monitoring, Credit Monitoring, Fraud Risk Management & Payments Reconciliation.
Solution Offerings
Our Fintech Products for Financial Crime and Compliance:
- i-AML© (Anti Money Laundering)
- i-TBML (Trade Based Money Laundering)
- i-FRMS (Fraud Risk Management)
- i-RTMS (Real-time Transaction Monitoring)
- i-EWS (Early Warning Signals for Credit Monitoring)
The differentiators of the solution are Enterprise Wide Single View of Risk & Compliance, Harnessing Advanced Analytics, Workflow, AI & ML, Leveraging Open Source & Cloud, Integrated Solutions across Customer Lifecycle, Comprehensive set of pre-built rules, scenarios from an industry proven financial crime library.
Functional Overview
Transaction Monitoring
- Comprehensive Rule Library
- Risk scores derivation for alerts
- Supports Real-Time and Batch-Mode alert generation process
- Rule Creation and Updation
- Workload Management
- False Positive Reduction
- Real-Time screening of wire-transfer
Know Your Customer (KYC)
- Creation of data repository
- Customer risk categorization
- Integration of Negative List
- Identify & Screening Ultimate Beneficiary Owner
- Identifying key missing information
- Online screening of PEP, Adverse Media Coverage, UN OFAC etc.
- 360 degree view of customer related information
Case Management
- Comprehensive case management
- Workflow creation
- Integration with Email & SMS gateway
- TAT monitoring
- False-Positive Reduction
Admin, Regulatory Report & MIS
- Creation of Regulatory – STR (SAR), CTR etc.
- Creation of internal note
- Graphs & MIS reports
- Integration with AD for authentication
- Schedulers and Real-time report generation
- Access controls
- Leave Management
- Audit trails
- User Management & System parameter settings
i-AML Application Framework
Our i-AML Clients
Frequently Asked Questions (FAQs)
Money laundering is the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses.
Our country has criminalized money laundering under both the Prevention of Money Laundering Act, 2002 (PMLA), as amended in 2005. This act levies a fine up to Rupees five lakhs, this upper limit of fine which the new bill proposes to remove and increase. The Prevention of Money Laundering Act, 2002 is an Act of the Parliament of India enacted to prevent money-laundering and to provide for confiscation of property that is derived from money-laundering.
The Act imposes obligation on banking companies, financial institutions, and intermediaries to verify identity of clients, maintain records and furnish information in prescribed form to the competent authorities formed and appointed in that regard. The PMLA seeks to combat acts pertaining to money laundering in India and in view of this, it mainly has three main objectives: (1) Prevention and control of money laundering (2) Confiscation and seizure of property obtained from laundered money (3) Manner to deal with any allied issued.
Banks and financial institutions must monitor all customer deposits and other transactions to ensure they are not part of a money laundering scheme. This includes verifying the origin of large sums of money and reporting cash transactions exceeding $10,000. AML checks also need to be performed by any company where there is potential for employees and/or customers to pass finances or assets off as legitimate transactions.
There are specialised authorities dealing with money laundering issues such as the Reserve Bank of India (RBI) / Securities and Exchange Board of India (SEBI) / Insurance Regulatory and Development Authority of India (IRDA) which also prescribe guidelines on anti-money laundering standards based on PMLA and Rules.
Customer due diligence (CDD) is the act of performing background checks and other screening as part of Anti Money Laundering (AML) compliance on the customer to ensure that they are properly risk-assessed before being onboarded. CDD is at the heart of Anti-Money Laundering (AML) and Know Your Customer (KYC) initiatives.
Identity verification ventures beyond traditional and physical methods of authentication to help establish identities in the digital era. Following are some benefits:
Minimise weaknesses in human control measures.
Improve customer experience and save costs.
Transaction monitoring.
Financial Inclusion.
Money laundering typically includes three stages: placement, layering and integration stage. Placement is the first step of money laundering which is the process of moving the money into the legitimate source via financial institutions, casinos, financial instruments etc. and at the same time, hiding its source.
KYC refers to customer identification and screening, and ensuring you understand their risk to your business. In this way, KYC compliance helps prevent money laundering as well as fraud.
