Disrupting Financial Crime Compliance with DCS

Financial institutions fight every day to be reliant against Financial Crime, but they are not investigation units of financial crime, they may arise some susceptions in some behaviors or transactions done by their clients.

The burden always falls in the arms of financial crime compliance teams, but what do they know, how can they understand if they are facing a real threat or not?

What can you translate from a transaction? You can check the intervenient, sanctions associated to all the players, banks, corresponding banks, currency, motive of the transaction against proofs…and so on…but at the end of the day how do you really know about that specific transaction? How can you decide in a case of an alert if you should authorize or not that transaction? And if you block a legitimate transaction? What are the consequences to the bank, to you? Who will be responsible for the delay…? It′s easy if you are talking about a shop payment, but what happens if you are giving an order to buy shares or to buy an asset, if the order is delayed the result will be different from the expected… once again who his responsible for this?

Daily news brings us a lot of reports about suspicious of money laundering, sometimes we can’t understand why, since in all major country’s money laundering is a subjacent crime and no one tells us what is that subjacent crime.

All of this brings a lot of pressure under financial crime compliance teams. What I’m dealing with? It’s this fraud, tax avoidance, money laundering, terrorism financing…. what??

This leads to a huge amount of SAR’s full field and delivered to the FIU’s or similar regulation authorities, and the result is a lot of workloads for the FIU’s and the major of them are irrelevant, but what happens to the ones that should be investigated???

Resuming the problem, in the last years we have inactivated banks and financial services to denounce every little thing that may look like suspicious or if the investigator didn’t understand.

Banks started to look for software that would help them in finding he wright suspicious cases, and they spent thousands of dollars doing that. At the end of the day, they achieved to build a completely siloed infrastructure that looks at a transaction in the full scope but with results going to different departments, and this leads to misunderstanding of the menace as a whole.

Software’s try to help Banks in solving this, but at the end of the day they don’t help you mitigate that risk…why? Let’s have this simple example transaction W is going from country A to Country B, in between it passed to country C and D within corresponding banks belonging to country Z and Y, the transaction was made in a C currency… result

An alert for Sanctions team is generated due to the country D, but country C also belongs to, let’s say, APAC region and its under scrutiny, so another alert is generated, the counterpart hits a special interest person…a new alert is generated to the screening team…and for example this client is the first time that he makes a transaction to country B, again a new alert is generated for the KYC team.

One transaction like this can generate 4 (four) different alerts to 4 (four) different teams that may be allocated in several regions of the world. On top of that they may have been generated from different control systems, like sanctions, profiling, transaction monitoring and screening.

This will contribute to a lot of time dispersal because each team will be looking for information regarding the same stakeholders at the same time without sharing information.

This is siloed information generated by different control software’s.

DCS it’s the only software that prevents you to spent money and time one the same investigation. DCS allows you to deliver a full integrated alert according to the riskier evaluation to a team, for example, if sanctions are the major threat, the alert will be generated only for the sanctions team but revealing all the other threats that they also look at.

DCS is fully integrated with banking core systems, CRM’s, document repositories and other data bases.

With DCS you can block in real time after evaluation against scenarios, rules, and behavioral models, allowing you to make the final decision at the right moment.

Other software’s will allow you to this after it happened, a true example is the PANAMA papers, all the banks in the world had to simulate scenarios too see if they were used in this case. They built specific scenarios, specific thresholds, had simulations and so on.

With DCS you only had to import the list, one click, and on the next morning you see all the results, transactions, accumulated transactions, relationships between entities, beneficial owners…everything.

DCS allows MLROS to build their reports in an automated way and with xml integration to all the major FIU’s, making your work, simple, auditable and more important trustfully.

DCS, you don’t know wat you are missing.