The members of ACTICO's Compliance User Group meet every year to discuss ways and means of coping with compliance regulations. The most important topics this year include suitability, anti-fraud, matching data against name lists, and visualizing transaction flows. Discover the tasks the persons responsible for compliance and IT are faced with:
To ensure suitability, financial institutions have to implement legal requirements and issue manuals and instructions. Keywords such as product migration, plausibility checks, customer classification, and cross border banking relate to this topic, especially in light of MiFID II. The central question is: How can a financial institution manage to consider all possible combinations, such as the analysis of which financial products are allowed to be offered to foreign customers, whether the customer’s risk appetite matches their experience, or how risk monitoring takes place in the context of stock exchange trading.
Identifying Financial Fraud in Due Time
Every institution defines factors for the protection of the customer and the institution itself to identify and combat fraud. Keywords include: hazard analysis, risk assessment of employees (Know Your Employee) and customers (Know Your Customer), and detecting misconduct (warrants, regulations, credit fraud).
Name Matching Against Black List
R+V, one of Germany’s largest insurance companies, has 26 million partners (insurance holders, insured people, claimants, employees) and records 100,000 changes a day. Stefan Dworschak, IT customer manager at R+V and speaker at the Compliance User Group, describes the exciting development of the “Sanctions Screening” project. The goal was to provide the integration of the standard software NMC (Name Matching Customer) into the IT infrastructure to match this enormous number of partners and their changes against entries on black lists.
Detecting Transaction Flows
It is important for financial institutions to monitor internal as well as external financial transactions. Thanks to the visual display of transaction flows, cash flow becomes very transparent. With its new interface, ACTICO's relation browser displays internal payments between business relationships and external payments by assigning bank details and presents the TRX flows, as they are known in technical jargon, in a clearly arranged manner.
Central Set of Rules for all Testing Scenarios
All these testing scenarios have a common denominator: Rules monitor whether the internal and external regulations are adhered to. They check transactions, match customer data with sanction lists, recognize fraud patterns, and ensure suitability. With Business Rules Management as a central set of rules, companies have clear advantages in regard to automation, hit quality, and auditing.
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