Nelito's fincraft aml

Nelito Systems Limited Anti Money Laundering solution Š Nelito Systems Ltd. 2013

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Table of contents Business drivers Money Laundering Overview Risks associated with laundering FinAML overview Solution architecture Technology and software stack Customization Nelito value proposition

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Our Commitment “Solutions that Perform” We solve business problems of our clients through solutions based on customer involvement, deep domain knowledge, innovative technologies and personalized service support

We deliver what we commit

3 © Nelito Systems Ltd. 2015

Corporate Snapshot Head Quartered at Mumbai 45+ Service Locations 800+ Professionals 100+ Banking Clients

• • • •

BFSI Focused Solutions with own IPR Products and product based services in the area of Transaction and Payment Systems, Analytics and DW, Mobility & e-Governance Leadership position in Automated Data Flow (ADF) MIS vis-à-vis compliance to Central Bank of the country Providing Manpower with varied Professional IT Skill sets to Banking and Non Banking organizations in India & International locations.

Partners

4 © Nelito Systems Ltd. 2015

Offerings Portfolio :- Products Transaction & Payment Systems

• Transaction:

Analytics Mobility & DW

• Data Quality

Payment systems

Mobility

Transaction & Payment Systems

• Mobile Banking

• CTS

• FinCraft CBS

• Cleansing

• Internet Banking

• NACH

• PACS

• Classification

• Door Step Banking

• SWIFT

• SACOS

• Enhancement

• E-KYC and

• IMPS

• AML

Customer On-

• DBT

• Reconciliation

Boarding

• ABPS

• LMS

5 © Nelito Systems Ltd. 2015

Offerings Portfolio : Services IT Services

• BPO Services • IT Infrastructure Management Services • Professional Consulting Services • 3rd Party CBS Implementation and Roll out Services

Transaction Mobility management services

• Customer OnBoarding services • Card management services • Reconciliation services • Customer identification services • Financial inclusion • NPA monitoring and management

Data management services

Transaction & Payment Systems

• SAP BO • IBM Cognos • Data quality services • Data enrichment services • MIS

Payment management services

• CTS • MMS • SWIFT services

6 © Nelito Systems Ltd. 2015

Customers FinCraft CBS Banks

Other Banks

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Customers Other Solutions and Services

International

Hutch Telecom Sri Lanka

Š Nelito Systems Ltd. 2015

e-Governance

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Business drivers Automatic verification of cases against scenarios provided by IBA/RBI Identification of customers Need for verification of customers against published lists The monitoring of transactions and reporting of suspicious activity

To comply with the stringent procedures laid out by the RBI and other regulatory bodies

9 Š Nelito Systems Ltd. 2013

Our Commitment “Solutions that Perform” We solve business problems of our clients through solutions based on customer involvement, deep domain knowledge, innovative technologies and personalized service support

We deliver what we commit

10 © Nelito Systems Ltd. 2015

Corporate Snapshot Head Quartered at Mumbai 45+ Service Locations 800+ Professionals 100+ Banking Clients

• • • •

BFSI Focused Solutions with own IPR Products and product based services in the area of Transaction and Payment Systems, Analytics and DW, Mobility & e-Governance Leadership position in Automated Data Flow (ADF) MIS vis-à-vis compliance to Central Bank of the country Providing Manpower with varied Professional IT Skill sets to Banking and Non Banking organizations in India & International locations.

Partners

11 © Nelito Systems Ltd. 2015

Offerings Portfolio :- Products Transaction & Payment Systems

• Transaction:

Analytics Mobility & DW

• Data Quality

Payment systems

Mobility

Transaction & Payment Systems

• Mobile Banking

• CTS

• FinCraft CBS

• Cleansing

• Internet Banking

• NACH

• PACS

• Classification

• Door Step Banking

• SWIFT

• SACOS

• Enhancement

• E-KYC and

• IMPS

• AML

Customer On-

• DBT

• Reconciliation

Boarding

• ABPS

• LMS

12 © Nelito Systems Ltd. 2015

Offerings Portfolio : Services IT Services

• BPO Services • IT Infrastructure Management Services • Professional Consulting Services • 3rd Party CBS Implementation and Roll out Services

Transaction Mobility management services

• Customer OnBoarding services • Card management services • Reconciliation services • Customer identification services • Financial inclusion • NPA monitoring and management

Data management services

Transaction & Payment Systems

• SAP BO • IBM Cognos • Data quality services • Data enrichment services • MIS

Payment management services

• CTS • MMS • SWIFT services

13 © Nelito Systems Ltd. 2015

Customers FinCraft CBS Banks

Other Banks

14 © Nelito Systems Ltd. 2015

Customers Other Solutions and Services

International

Hutch Telecom Sri Lanka

Š Nelito Systems Ltd. 2015

e-Governance

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Money laundering overview Money Laundering is the process by which illegally gained money is converted to clean assets thus making it hard to trace a path back to the origin of the proceeds. It involves: Placement – Deposit of illegal proceeds in financial institution.

Layering – Use of complex transactions to disguise the audit trail and provide anonymity Integration – Money is now integrated into the legitimate financial system and is assimilated with all other assets in the system.

16 © Nelito Systems Ltd. 2013

Money Laundering Overview Ease of detection high

Difficult to detect

Offshore account B Offshore account C

• • • • • • • • • •

Money Laundering Techniques Employed Payable through accounts Loan back arrangements Connected Accounts Forex Money Changers Credit / Debit cards Companies Trading and Business Activity Correspondent Banking Lawyers, Accountants and other Intermediaries Misuse of Non Profit Organization

• • • • • • •

Indian account Offshore account

INTEGRATION

Bank

Investment in business

Japan account

LAYERING

Illegal Money

PLACEMENT

Offshore account A

London Account

Investment in business

Expensive purchases

Legal sources of Terrorist funding Collection of Membership dues Sale of Publications Cultural and Social Events Door to door solicitation within community Appeal to wealthy members of the community Donation of a portion of Personal Savings

Legal Money

• • • • •

• •

Illegal sources of Terrorist funding Kidnap and Extortion Smuggling Fraud including Credit Card fraud Misuse of non-profit organization and Charities fraud Thefts and Robbery Drug Trafficking

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AML - Regulations

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FinAML FinAML is an enterprise scale real time monitoring and surveillance solution for financial services organizations Uses rule based surveillance engine that monitors current transactional data, non transactional data and historical data for

suspicious trading patterns.

Extensive library of analytical foundations and detection models helps organizations to be compliant with AML regulations

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FinAML overview The following broad scenarios are integrated into FinAML but it can be customized for other purposes as well: Trading • • • • • • • • • •

Insider trading Front running Tail gating Wash trades Price ramping Painting the tape Layering Trading volume spike Trading price spike Passive and large orders monitoring • Excessive cancel and corrects • Frequent changes to instructions

Banking • • • •

Excessive ATM Activity Burst in beneficial activity Circulation of funds Excessive cash/cash-equivalent transactions • Frequent loan activity • Monitoring transactions of Politically active persons (PEP), Non-Cooperative Countries or Territories (NCCT), FATF blacklist countries • Early repayment of loans

KYC • Frequent client data changes • Frequent ownership structure changes • Suspicious events after change in client data • Screening of accounts with incomplete KYC data • Hidden client links • Logical client links

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Solution functionality Capability to generate alerts on all 61 scenarios prescribed by IBA/RBI Highly customizable and allows generation of future scenarios Ability to provide PAN verification of customers Allows for the automatic filing and sorting of STR alerts based on different parameters Supports all popular formats of reporting Repository for generated STR alerts

Provides audit trails for the activities of all users Provides risk categorization of all the customers Exercises extra due diligence for high risk customers

Provides different reports regarding deficiencies in KYC and other features 21 Š Nelito Systems Ltd. 2013

Solution architecture

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Salient features

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Technology and software stack

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Customization project scope

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Customization process

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Nelito value proposition

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Customer value proposition Operational Excellence

Risk Mitigation

Performance

Fast Implementatio n

• Eliminate on manual processes, minimizing risk of error • Reducing costs • Freeing staff from routine number-crunching, redeploying into higher-value activities

• Greater Financial Control • Standardization of methodologies around the enterprise • Able to set risk thresholds, data access and other controls centrally • Better compliance with regulatory requirements

• Timely real time Monitoring • Faster Processing– a million transactions reconciled in 2.39 minutes (as tested by HP) • Intelligent Surveillance Engine to detect and report focused violations.

• Enterprise Solution, seamless integration with virtually any Upstream & Downstream Systems • Highly flexible and Customizable via Configuration • Customer Specific Customization via Configuration for any data structure, business rules and reporting

28 © Nelito Systems Ltd. 2013

THANK YOU Get in touch 205-208 Bldg 2, Sector 1 Millennium Business Park Navi Mumbai 400 710 Tele: (+91-22) 6713 5555, 6713 5600

Fax: (+91-22) 6713 5503

© Nelito Systems Ltd. 2013