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Enabling Cost Effective Financial Crimes & Regulatory Compliance Related Processes, Controls & Procedures

01

Sanction Screening

Our Sanction Screening software provides end-to-end solutions using Artificial Intelligence Technology. Several discounting factors (CNIC/Passport/Driving License/Any Government Issued Document etc) are used to discount the alert generated against a particular customer’s name using multiple factors such as “Fuzzy Matching” algorithms, workflows, and match rules. Sanction Screening cannot detect every possible sanction risk due to a wide range of variables in which a string of text could be altered and still convey the same meaning. 

Sanctions Screening is dependent on a range of factors, including the type, availability, completeness, and quality of data, as well as the inherent sanction risks to which a Financial Institution, its products, customers, and services are exposed. Stifle combines AML solutions with Machine learning in order to screen the verification.

02

PEP Screening

A Politically Exposed Person represents a higher risk for potential involvement in bribery and corruption by virtue of their position and the influence that they may hold. There is a need to conduct separate checks against PEPs to protect from exposure to the menace of financial crimes thus Stifle offers you the process to. Our PEP database with Politically Exposed Persons (PEPs), their family members and close associates is regularly updated to keep you up to date with the most recent changes.

Moreover, if a customer is identified as PEP, the system will perform the following actions as per AML/CFT/CPF Regulations:

  • Automatically mark the customer as either PEP (Self), Family member of PEP (Spouse, Parents or Children) or Close Associate of PEP (Self or Linked)
  • System will ask the user to input the details of the PEP such as Position /Status of PEP (Diplomat, Government Official, Military Official, etc.)
  • Senior Management Approval will be obtained to establish or continue business relationship
  • Conduct enhanced on-going monitoring of business relations with the customer or beneficial owner identified as PEP, Family member of PEP or close associate of PEP.

03

Know Your Customer (KYC) And CDD Measures

Online identity verification is the starting point for AML compliance in a digital world. AML and KYC go hand in hand when it comes to the role of online identity verification. Entities are constantly working towards identifying and preventing customers who are perpetrators of financial crimes. To prevent such customers from entering the financial system, a robust customer due diligence (In line with the Regulations) is an important step. 

To address such needs, our electronic KYC Solution provides cost effective measures to identify and prevent financial crimes, allowing entities to meet the regulatory requirements and improve overall customer relationship and experience. Our solution will be based on Comprehensive Risk Scoring Model, Continuous On-going review (Periodic Review, Alert/Event-based Triggers, Change in Information, Change in Risk Scores/Rule Values), Identifying the Beneficial Owners, Simplified Due Diligence, Customer Due Diligence and Enhanced Due Diligence Process and much more.

04

Customer Risk Rating Methodology

Financial institutions must implement risk management as a feature in the AML Solutions and AML systems to enhance their controls in the complex environment. Risk Assessment forms the basis for applying to the AML compliance programme. AML Solutions and AML systems must include risk assessments and customer screening policies and procedures and policies regarding high risk with special categories of customers. Our Risk Assessment Solution will provide a more in-depth assessment of Risk based on FATF Recommendations on “Risk-based Approach” where the whole concept of Risk Assessment will be based on the organization’ s business model and risk appetite. 

To address the ML/TF/PF and other emerging risks, entities shall identify, assess, and understand ML/TF/PF and other emerging risks they face at entity level for customers, products, services, delivery channels, technologies, and their different categories of employees etc. Our Risk Assessment and Customer Profiling Solution will provide a comprehensive calculation of customer risk profiling based on predefined risk dimensions (Such as Customer Type, Geographic Location, Products and Services and Delivery Channels) that will be in line with FATF’s recommendations and regulatory requirements.

05

Transaction monitoring

Transaction Monitoring system allows banks and other financial institutions to monitor customer transactions daily or in real-time for risk. By combining this information with analysis of customers’ historical information and account profile, our solution can provide entities with a whole picture analysis of a customer’s profile, risk levels, and predicted future activity, and can also generate reports and create alerts to suspicious activity. As per the Regulations, entities shall implement a TMS system which is capable of producing meaningful alerts based on predefined parameters/thresholds, and customer profile, for analysis and possible reporting of suspicious transactions. 

Keeping in view the regulatory requirements, our solution can perform real-time transaction monitoring based on the set of rules (Universal/Standard Rules and those defined by entities based on their risk-based approach.

06

Suspicious Transaction Reporting

Suspicious Transaction Reporting are central to effectual AML, and of vital importance to regulatory and law enforcement agencies. Improved STR quality, from investigating and documenting the suspicious activity to writing insight-filled narratives that serve as a front line in the fight against financial crime is a must have feature for a good AML Solutions and AML systems. Hence, our system is capable of addressing the needs for timely and effective STR Reporting as per the country’s regulatory and law requirements. Our system will take the user to the Country’s “STR” Reporting tool so that the user can timely file an STR and doesn’t miss out on important regulation.

07

Regulatory Compliance Advisory 

 The objective of Regulatory Compliance is to comply with the relevant laws, policies and regulations. In many countries, NBFIs are the primary providers of financial services striving to attend unserved and underserved customers. NBFIs need regulatory certainty to operate in a fast-changing financial sector. Regulations set the basic requirements to ensure that sound NBFIs provide long-term, sustainable, and responsible financial services to the unserved and underserved. Regulations contribute to greater consumer trust in NBFIs. Keeping in mind that the current mandate of the regulator with regards to NBFIs is to regulate, supervise and oversee, our team will assist companies at the strategic level- by maximizing any competitive advantages from regulation through to the operational level. We will work with you to minimize the costs and disruptions to your business, freeing up management time in the process.

Our scope of work will include the following:

  • Assessment of current and future regulatory compliance
  • Effectiveness review of current compliance department
  • Evaluation of new regulations of your business model
  • Advice and Assistance with regulatory relations and in meeting regulatory standards and expectations
  • Advice and support in dealing with regulatory enforcement actions and remediation exercises

Any other work that is deemed necessary with regards to regulatory compliance.

08

Financial Crimes Advisory

Since United Nations through its Securities Council Resolution 1617 requires all UN member State to implement FATF’s AML /CFT Recommendations and Pakistan being member of UN and Asia Pacific Group (APG), a FATF-style Regional Body is required to adopt FATF Standards as per membership obligations. Henceforth, the reporting entities are obliged to (i) assess the money laundering and financing of terrorism risk that it may reasonably expect to face during its business, i.e., (ii) establishing, implementing and maintaining an AML/CFT programme (procedures, policies and controls) to detect, manage and mitigate the risk of money laundering and the financing of terrorism, (iii) Customer Due Diligence (CDD) (Identification and Verification of Identity) and ongoing CDD, (iv) suspicious transaction reporting, (v) record keeping.

To prevent the possible use of NBFCs as a conduit for money laundering or terrorist financing activities, we will help Companies in adopting the following:

  • Assessment of current and future regulatory
  • Effectiveness review of current compliance department
  • Evaluation of new regulations of your business model
  • Advice and Assistance with regulatory relations and in meeting regulatory standards and expectations
  • Advice and support in dealing with regulatory enforcement actions and remediation exercises

Any other work that is deemed necessary with regards to regulatory compliance.

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