fincraft - anti money laundering solution by nelito

Nelito Systems LimitedAnti Money Laundering

solution

© Nelito Systems Ltd. 2013 1

Table of contents

Business drivers 4

Money Laundering Overview 5

Risks associated with laundering 8

FinAML overview 9

Solution architecture 12

Technology and software stack 14

Customization 15

Nelito value proposition 17

© Nelito Systems Ltd. 2013 2

Our Commitment

© Nelito Systems Ltd. 20153

“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

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


5

Offerings Portfolio :- Products

Mobility

Transaction & Payment Systems

• Data Quality

• Cleansing

• Classification

• Enhancement

• Transaction:

• FinCraft CBS

• PACS

• SACOS

• AML

• Reconciliation

• LMS

• Mobile Banking

• Internet Banking

• Door Step Banking

• E-KYC and

Customer On-

Boarding

• CTS

• NACH

• SWIFT

• IMPS

• DBT

• ABPS

MobilityTransaction & Payment Systems

Analytics&

DW

Payment systems


6

Offerings Portfolio : Services

Mobility


• Customer On-Boarding services

• Card management services

• Reconciliation services

• Customer identification services

• Financial inclusion• NPA monitoring

and management

• BPO Services• IT Infrastructure

Management Services

• Professional Consulting Services

• 3rd Party CBS Implementation and Roll out Services

• SAP BO• IBM Cognos• Data quality

services• Data enrichment

services• MIS

• CTS• MMS• SWIFT services

Data management

services

IT Services Transaction management

services

Payment management

services

Customers

FinCraft CBS Banks Other Banks

7


Customers

Other Solutions and Services e-GovernanceInternational

8


Hutch Telecom Sri Lanka

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

Business drivers

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

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


12

Offerings Portfolio :- Products

Mobility


• Data Quality

• Cleansing

• Classification

• Enhancement

• Transaction:

• FinCraft CBS

• PACS

• SACOS

• AML

• Reconciliation

• LMS

• Mobile Banking

• Internet Banking

• Door Step Banking

• E-KYC and

Customer On-

Boarding

• CTS

• NACH

• SWIFT

• IMPS

• DBT

• ABPS

MobilityTransaction & Payment Systems

Analytics&

DW

Payment systems


13

Offerings Portfolio : Services

Mobility


• Customer On-Boarding services

• Card management services

• Reconciliation services

• Customer identification services

• Financial inclusion• NPA monitoring

and management

• BPO Services• IT Infrastructure

Management Services

• Professional Consulting Services

• 3rd Party CBS Implementation and Roll out Services

• SAP BO• IBM Cognos• Data quality

services• Data enrichment

services• MIS

• CTS• MMS• SWIFT services

Data management

services

IT Services Transaction management

services

Payment management

services

Customers

FinCraft CBS Banks Other Banks

14


Customers

Other Solutions and Services e-GovernanceInternational

15


Hutch Telecom Sri Lanka

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

Money laundering overview


17

Money Laundering Overview

Ease of detection highDifficult to detect

Illegal Money Bank

Offshore account A

Offshore account C

Offshore account B

Legal Money

Japan account

Offshoreaccount

Expensive purchases

INTE

GR

ATI

ON

Investment in business

London Account

Investment in business

PLA

CEM

ENT Indian

account

LAYE

RIN

G

• 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

• 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

• 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


18

AML - Regulations

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


19

FinAML

The following broad scenarios are integrated into FinAML but it can

be customized for other purposes as well:


20

FinAML overview

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

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

Solution functionality


22

Solution architecture


23

Salient features


24

Technology and software stack


25

Customization project scope


26

Customization process


27

Nelito value proposition


28

Customer value proposition

• Eliminate on manual processes, minimizing risk of error

• Reducing costs

• Freeing staff from routine number-crunching, redeploying into higher-value activities

Operational

Excellence

• 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

Risk Mitigation

• 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.Performance

• 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

Fast Implementatio

n

THANK YOUGet 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


fincraft - anti money laundering solution by nelito

Business

banks7 nelito systems

partners nelito systems

nelito value proposition

product based services

customersother solutions

banking organizations

area of transaction

mumbai45 service locations