Anti-Money Laundering Solution: Know your Customer [CASE STUDY]

Based in New York, USA, Client Company was founded in 2006 as a research and development firm specializing in real time data analysis for the purpose of dynamic Knowledge Management (“dKM”), Data Surveillance and Business Intelligence and offers a wide range of products related to Risk Management and Knowledge Management.

As per the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act; checking names against restricted lists is a critical part of any Client Screening (Know Your Customer) process, CIP (Customer Identification Program) policy, or AML (Anti-Money Laundering) procedure. Hence, it was essential that businesses have an efficient process for screening new customer accounts.

The Client wanted to have a custom Anti-Money Laundering Solution which would be a dedicated account opening system, requiring robust data capture, risk scoring, entity verification, and second-level CIP review functionality, and also service to another account opening system enabling risk scoring and entity verification as add-on components, in addition to second-level CIP review functionality.

Know your Customer (KYC) is a web-based anti-money laundering solution for account opening and customer record management system, designed to enable financial institutions to capture required documents, perform validation of customer information against public and private records databases, and verify customer identity using the Verid iAuth Knowledge Based Authentication (“KBA”) system.

Uniquely, the anti-money laundering solution are decision trees, which enable users to define adaptive rules that analyze documents provided by a customer, questions answered by a customer during the account opening process, risk scores obtained from credit bureaus and other sources, and KBA results to determine whether a customer relationship can be created without additional research from a bank’s compliance department.

This anti-money laundering solution also provides integrated email and web browsing for account opening approval/rejection justification research, full text search of all maintained customer records, management reporting and dynamic statistics, display of RSS feeds and broadcasted notes, and the ability to define approval/rejection workflow using an easy to use interface.

Major features of the anti-money laundering solution provided include:

• Customizable account opening forms for each type of customer relationship at the bank
• Questions and documentation requirements which are dependant on the type and nature of the customer relationship
• Ability to bring in risk scoring from credit bureaus and other data providers to establish the quantifiable financial crimes risk
• Ability to create complete “Customer Files” in the second-level review process to justify to auditors why certain high-risk relationships were established or were not established
• Ability to automatically search both customer profiles that were previously accepted, rejected, or in progress
• Ability to establish an automated workflow for the second-level review process

• Java 1.5, JSF, Spring, Hibernate, Servlets, XML, Web Services
• Jasper Reports, JDIC Browsers
• Tomcat 5.5, WebSphere 6.1
• Oracle 9i, MS SQL