Banking
Banking institutions are becoming more and more susceptible to fraud over the years although various control measures have been put in place. Fraudsters are now more versatile in designing their way of working to circumvent the controls. It is in banks’ interest to ensure constant guard and being up to the challenge of providing a secure environment for customers to conduct banking transactions. Greater business complexity (increased scope and magnitude of banking transactions witnessed in the past few decades, the emergence of hybrid financial products, the increasing trend of cross-border financial transactions, and the dynamics of real-time fund movement) have introduced new compliance challenges for organizations all over the globe. For each bank or other financial institution especially nowadays is of great importance to adopt an appropriate control system covering modules such as Know Your Customer (KYC), Anti-Money Laundering (AML), and Counter-Terrorist Financing (CTF), as they present a significant risk not only to banking but to the whole financial sector.
PROBLEM
Statistically speaking, banking fraud is on a rise. ACFE’s Report to the Nations (2020) reveals that the biggest weaknesses that contribute to this trend are override of existing internal controls, lack of internal controls, and lack of management review. To build a healthy customer portfolio, KYC activities are crucial for understanding the general activities in which customers usually would be expected to engage. Those activities give a bank or other financial institution also an opportunity to detect unusual and suspicious activities and to identify whether a specific client is included on different listings – sanction lists (corrupted persons), lists of politically exposed persons, terrorist lists, etc. There is a marked overlap between money laundering and terrorist financing – both criminals and terrorists use similar methods to store and move funds. But banks can’t fight back unless they have proper tools. They lack integration with publicly available sources, they lack proper definition and segmentation of risk and especially they desperately lack implementation of predictive and analytical models.
SOLUTION
RAALS is a built-in internal control tool for supervision of both - internal (employees) and external (customers, suppliers, contractors, etc.) players. It gives banks the ability to detect, investigate, monitor, and visualize their findings, and therefore create reports for better management review. It contains the technologies and knowledge of the banking sector for Loan Fraud, Electronic Transaction Fraud, Internal Fraud, Anti-Money Laundering, Terrorism Countering, and other compliance areas. By comparing the structure of the current transactions and pre-established patterns of fraud, RAALS identifies suspicious transactions “on the fly” and routes them to the relevant department for investigation. Using Fraud Indicators and Early Warning System, the structure detects potential risks and reduces unjustified blockages of credit cards, additional authorizations, seizure, and destructions of the credit cards and is therefore improving customer satisfaction. Through some of the most advanced data modeling and using information from structured and unstructured data as well as information on the internet, media, and social networks such as Facebook, Twitter, company registers, etc., makes RAALS one of the most advanced and all in one, fraud prevention and compliance solution on the market.
