Financial Intelligence Units and Financial Institutions

Financial Intelligence Units and Financial Institutions

Overview

The idiom, ‘killing two birds with one stone,’ was first used in literature around the mid-1800’s. The idiom was used to convey the ability to solve two problems with one solution. We, likewise, hope to be able to solve the laborious issues for both, the reporting entities and the Financial Intelligence Units (FIUs), with one solution.

When we began looking at the anti-money laundering and combating terrorist financing regulations, on behalf of the financial institutions, we were focused on automating risk based programs and integrating it within the business processes of our financial institutions. While delivering our integration of risk based programs for anti-money laundering, we learned that our financial institutions were spending an inordinate amount of time filling out and delivering reports for the FIU government agencies.

Common Requirements

Digging a little deeper, we also discovered the extraordinary requirements placed upon the FIUs and discovered there was a common theme between the FIUs and the reporting entities, the need for; data management, managed policies, timely communications and the coordination of information. Thus the idiom two birds with one stone, two problems that could be solved with one solution. RiskCALM₄^® can answer the problem for both entities and in doing so perhaps have an impact on the Regions regulatory concerns of money laundering and terrorist financing. The FIUs also, like our customers, had a tremendous workload, considering; the number of reporting entities they were dealing with, the amount of data and their own internal policies and business processes, while dealing with multiple government departments. Their overall responsibilities:

• Act as a repository of reports and other disclosures and their data, ensuring greater efficiency in processing and analyzing of information.
• Analyze the reports received in order to determine which constitute evidence of potential criminal activity, along with information contained in government databases and other public sources.
• Disseminate the resulting intelligence as part of a country’s efforts directed at anti-money laundering and combating the financing of terrorism. The information sharing function of a FIU requires it to share information with domestic regulatory and judicial authorities as well as with international authorities involved in the detection, prevention and prosecution of money laundering and terrorist financing.
• Cover the expanded scope of combating terrorist financing reporting entities that are non-financial institutions.

Include their goals; effectiveness, inter-department coordination, clean suspicious activity reports, statistics, and data management, it is obvious a solution is needed and it is obvious that with the FIUs’ and the financial institutions’ common requirements and goals there is a case for a common solution.

Solution

With RiskCALM₄^® the solution is not only common but a comprehensive continuum. It will allow for differences in depth while mirroring each other in function. Managing data’s sanctity and lineage while seeking different depths of understanding. Managing policies relative to your institution, yet everyone be assured of their own execution. Improving the effectiveness of your processes while with varying conclusions. Producing reports that are factual and exact while serving different purposes for those who depend on them. Creating a vast amount of data, managed alike but for totally different analysis. A common solution with an individualized application.

RiskCALM₄^® solution, automating the data gathering and the policies of a FIU’s and financial institution’s risk based programs, integrated within their business processes, improving their reporting and facilitating their intra and inter-department communications.