Anti-Money Laundering Key Risk Indicators

Case-Study-Money-Laundering[1]

Our client, a European leader in banking and finance with over 180,000 employees in 75 countries, is one of Italy’s main banking groups with 2.3 million individual customers. A financial institution of this size had a clear need for consistent and quality data, but issues had arisen in regard to their rating system for Key Risk Indicators in relation to anti-money laundering. They had previously created a prototype using individual applications, to test the efficiency of the indicators and the model. However, after this phase the bank still had a stringent need to institute a new system that above all would automate the entire chain.

It was a huge challenge – they needed a robust solution that would, amongst other things, integrate with the bank’s internal model, architecture and processes, guarantee maximum flexibility for users to define indicators for their own system, automatically execute data acquisition and guarantee maximum traceability and reproducibility in a rapid and efficient manner.

They needed to speak to experts in data management for financial services. They needed a structured and accountable approach to anti-money laundering. They spoke to us.

The Solution – Irion

Irion stood out to our client thanks to our strong experience within the banking and financial industry. Our experienced teams readily understood their business requirements and were able to create them a cost-effective business solution which would also serve to reduce project risks).

Over  a space of just 4 months, the project took shape. Beginning with reviews of functional analysis and KRI calculation metrics, things moved along with breathtaking efficiency until the project concluded with  the solution roll out. After the first release, the number of monitored indicators had grown, thus expanding the project’s scope of coverage.

Irion’s methodology reduces costs, reprocessing, and metric tuning during construction which was hugely appealing to the client, and the project was completed turnkey for them, guaranteeing the client maximum cost control of the initiative.

The Benefits

Thanks to Irion, our client now has an automated, flexible and high performance system that implements a new and more effective model of risk analysis. Incredibly cost effective, this comprehensive and powerful solution operates with more than 100 types of KRIs. These include:

  • Anti-Money Laundering
  • Violations
  • Metadata
  • Controls
  • Cash transactions
  • Bank transfers
  • LDR
  • Card transactions
  • Cheques
  • Service and other transactions
  • Fraud

This highly automated solution also enables advanced functions that today guarantee the automatic monitoring for AML processes. In particular:

  • advanced functionality of a structure that can configure and integrate within the system
  • a centralized dictionary, that saves the indicators,, their hierarchies, measures and metadata
  • a structured repository to store metadata necessary for calculation
  • a user friendly UI dedicated to recording and modifying metrics and metadata
  • a dynamic KRI (multi level KRI) execution engine
  • a dynamic scoring engine
  • a simulation environment for verifying and testing KRIs
  • a repository to store elaboration results and utilized calculation logics
  • an analysis dashboard

Irion has saved the client time and money and simplified the anti-money laundering key risk indication process by successfully automating the entire chain.

All this thanks to the creation and implementation of a new solution that took  just four months to get going.