Friday, October 30, 2020

Protiviti and Appway to Help Financial Institutions Automate Key Anti-Money Laundering Processes

-

Global consulting firm Protiviti has formed a business alliance with leading process software provider Appway to enable financial institutions to automate their Know Your Customer (KYC) programs in support of anti-money laundering (AML) policies and procedures.

The new service makes it possible for financial institutions to significantly reduce the number of manual hours required for their current resource-intensive KYC periodic review process.

Charged with helping U.S. government agencies detect and prevent activities such as money laundering and terrorist financing, financial institutions must implement AML policies and procedures that rely on robust KYC programs.

A key element of such programs is a periodic review of their customers’ information. In the past, these reviews have required time-consuming manual processes to perform Customer Due Diligence (CDD) for all customers and Enhanced Due Diligence (EDD) for higher-risk customers.

- Advertisement -

The new service offered by Protiviti and Appway includes the KYC Periodic Review Tool, which helps financial institutions better manage CDD and EDD requirements and streamline the periodic review process by leveraging Protiviti’s regtech and compliance expertise and Appway’s process orchestration and automation capabilities.

Today’s periodic review process is inefficient and not intuitive. Analysts have to perform multiple manual tasks, from logging into dozens of systems, requesting additional customer information via the branch network or relationship managers to reviewing and summarizing data.

The Protiviti-Appway solution eliminates the manual data collection, review, aggregation and validation of the information into one efficient system, and transforms the analyst’s role from data gatherer into decision maker.

“As a result, financial institutions get better quality information faster with more consistency and at a lower cost,” said Vishal Ranjane, a managing director in the Risk and Compliance practice at Protiviti.

- Advertisement -

“The customer experience also improves because banks’ customers no longer receive unnecessary or conflicting requests for information that they’ve previously provided to the financial institution.”

“With our years of experience in anti-money laundering and Know Your Customer programs, Protiviti has the expertise to guide financial institutions in efficiently transforming their current manual practices into highly optimized automated processes,” added Ranjane.

“Traditional review processes are manual and require multiple hand-offs, which is why we offer the solution and tools to manage complexity by connecting the disconnected and enabling collaboration between people, data and systems,” said Nina Schneider, head of Solutions and Products at Appway.

“By incorporating Compliance by Design principles, Appway’s solutions simplify daily compliance-related tasks and increase financial institutions’ agility and ability to innovate in an increasingly complex regulatory landscape.

The automation of manual and operational tasks frees up significant time for compliance workers and in turn allows them to dedicate time to more value-adding activities.”

Faced with multiple disconnected data sources, financial institutions currently spend approximately 80 percent of the time required for the periodic review process on data collection and consolidation, and only 20 percent analyzing the data gathered.

Manually tracking periodic review schedules, verifying sources and fact-checking negative news content about customers takes significant time and leads to errors and untimely reporting. Minimal dashboarding capabilities also limit the production of detailed, accurate metrics and reporting.

The KYC Periodic Review Tool contains the following key capabilities to address these challenges:

  • Automates the process of collecting data from various source systems (data orchestration), enabling the investigator to analyze the data versus spend significant time collecting data
  • Automates searches related to negative news, sanctions and internal blacklists for increased efficiency and accuracy
  • Streamlines the process of reaching out to end customers to update their current information (referred to as the Request for Information), with requests systematically generated and tracked, including a verifiable audit trail
  • Real-time reporting on elements such as the financial institution’s service level agreements to complete the periodic review process; process exceptions; day-to-day monitoring of individual cases; and trend analysis

MUST READ

FirstEnergy fires CEO, other executives over Ohio bribery scandal

FirstEnergy Corp. has fired its CEO amid multiple federal investigations related to an Ohio nuclear bailout law passed year. The Akron-based utility company announced in a...

Ukraine’s court strips critical power from anti-corruption agency

Ukraine's Constitutional Court has stripped the country’s anti-corruption agency of some of its critical powers. The high court’s ruling published on October 28 declared it...

Former South Korean President Lee Myung-bak sent back to prison for 17 years in corruption case

Former South Korean president Lee Myung-bak was ordered back to prison on Thursday (Oct 29) as the country's Supreme Court upheld a 17-year jail...

Nigerian court declines to issue international arrest warrant for fugitive ex-Petroleum Minister in corruption case

The Abuja Division of the Federal High Court, on Wednesday, refused an application by the Economic and Financial Crimes Commission, EFCC, for an arrest...

South Korea’s former Vice Justice Minister sentenced to jail for bribery and sexual favors

Former Vice Justice Minister Kim Hak-eui, the figure at the center of one of Korea’s biggest political sex scandals, was placed under pretrial detention...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Dutch prosecutors seize $33m in bitcoin from couple convicted of money laundering

Prosecutors from the Netherlands have seized 2,532 bitcoins worth $33 million after a couple was convicted of money laundering by the Rotterdam District Court....

Former Harris County deputy constable pleads guilty to transporting drug money and heroin

A former Harris County deputy constable and her husband pleaded guilty Wednesday to charges of conspiracy to possess with intent to distribute heroin, according...

Spanish police arrests operator of Crypto Arbitrage firm Arbistar on fraud charges

The CEO of Arbistar the Spanish investment company, Santiago Fuentes, has been arrested and arraigned on charges of fraud, belonging to a criminal organization...

Two U.S. Navy service members get prison for defrauding military insurance program

Two U.S. Navy service members were sentenced in San Diego federal court Friday for their roles in an insurance fraud scheme that involved making false medical claims to...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks