International standards for the prevention and fight of money laundering and terrorism financing impose in each country the creation of a Financial Intelligence Unit (FIU). This is in charge of investigating suspicious transactions and issuing suitable prescriptions aimed at facilitating their identification. Financial intermediaries are required to send a report to the FIU when “they know, suspect or have reasonable grounds to suspect that they are being or have been committed or attempted money laundering or terrorism financing“.
The computation of Key Risk Indicators (KRI) issued by FIU, the generation of reports on suspicious customers, as well as the definition of new KRIs, are all activities requiring the processing of large volumes of data distributed over multiple sources. Since an exhaustive manual approach is clearly prohibitive, CartaLis used to manually analyze a relatively small subset of such data, with a number of unavoidable drawbacks:
- Incompleteness and low reliability of the generated reports;
- KRIs not always effective;
- Impossibility of defining new KRIs based on statistical customers characteristics;
- Delays in sending the reports to the Bank of Italy.
IRMA is the software solution, developed by Exeura for CartaLis, which analyzes transactions for over 3 Tb data/day, by offering the following primary functionalities:
- evaluation of customer risk factors;
- generation of reports on suspicious customers and transactions;
- support to the definition of new KRIs based on “typical” customer purchasing behaviors;
- integrated management of customer dossiers concerning usage of prepaid cards (the customer base contains data about over 1,800,000 customers).
IRMA relies on the Exeura’s knowledge discovery platform Rialto.
The following are the main benefits for CartaLis:
- monitoring of the entire customer base;
- time reduced by 70% for notifications to the Bank of Italy;
- increased productivity: from 2.7 h/report to 1.8 sec/resport;
- increased reliability: zero risk of errors of data transcription.
Market: Bank & Finance
Task: Risk assessment – money laundering and terrorism financing