Anti-Money Laundering

30% Reduction In The Number Of Companies Classified As High-Risk By Enhancing Anti-Money Laundering (AML) Compliance

Client Overview

Due to the rapid growth of financial crime, the central bank faced increasing challenges in regulating the money-changing industry. High-risk money changers exploited vulnerabilities in the system, facilitated money laundering, and undermined the integrity of the financial system. Traditional AML measures were proving inadequate in detecting complex and evolving financial crime patterns.

Objectives

  • Enhance the detection of suspicious activities in the money changing industry.
  • Improve the efficiency of AML compliance and supervision.
  • Protect the integrity of the financial system and reduce financial crime.

Enhancing Anti-Money Laundering

Challenges

The rapid growth of financial crime made it difficult for traditional AML measures to detect complex and evolving patterns. High-risk money changers were exploiting system vulnerabilities, posing significant risks to the financial system.

Solutions

The central bank implemented an advanced analytics platform leveraging multiple data sources to identify potential risks. This solution incorporated:

  • Transaction Data: Analysing transaction patterns, amounts, and frequencies to detect anomalies indicative of money laundering or terrorist financing.
  • Customer Data: Profiling of customers based on demographic, financial, and behavioural information to identify high-risk individuals or entities.
  • CCTV Data: Real-time monitoring of customer interactions and employee activities to identify suspicious behaviour or unauthorised access.
  • Company Profile Data: Assessing company ownership, structure, and regulatory compliance to determine overall risk.
  • Immigration Data: Verifying customer identity and residency status to prevent fraudulent activities.

Advanced analytics models were developed to process and analyse this vast amount of data, generating actionable insights and alerts for the supervision team. These models were designed to identify suspicious activities, such as large cash transactions, unusual transaction patterns, and discrepancies between customer information and transaction data.

Anti-Money Laundering

Results/Benefits

The implementation of the analytics platform significantly enhanced the central bank’s ability to identify and mitigate risks associated with high-risk money changers. Preliminary results indicated a 30% reduction in the number of companies classified as high-risk.

Key benefits of the solution include:

  • Improved Detection of Suspicious Activities: Leading to a higher number of successful investigations and prosecutions.
  • Enhanced Efficiency: Automated analysis and alert generation improved the efficiency of the supervision team.
  • Strengthened AML Compliance: Reducing the risk of financial crime within the money changing industry.

Enhanced Protection: Strengthening the country’s financial system and reputation.

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