Money laundering detection and PATRIOT Act compliance

We know Prior to 2001, banks only had to monitor high risk areas such as private banking for suspicious activity and report cash transactions in excess of $10,000. With the passage of the PATRIOT Act in 2001, BSA regulations were expanded to include extensive anti-money laundering rules.

ML Shield™ maintains a database updated daily with account and customer information including identifying fields, deposit, loan and complementary product, e.g. Trust transactions, debit/credit ratios, turnover analysis, and tracking mechanisms to monitor movement and application of funds within and between customers’ accounts.

The bank is provided robust options to set parameters that red flag accounts and customers for reporting and analysis. Once an account or customer is flagged as meeting suspect money laundering parameters, additional tests are performed to dynamically risk rate for probability of money laundering and to search for anomalies in customer records and transactions. The most complex layering is readily detected. The bank has a choice of reports and desktop displays. A KYC database supports identification of transactions outside expected for a customer.

ML Shield™ is designed to deal with the complex testing and analysis issues associated with the movement and use of funds. For example, a bank can choose options to select measurement and analysis factors and is provided options to refine selections, e.g. by transaction codes, risk codes, types of accounts, geographic location of accounts, cumulative deposits and withdrawals by account and by customer, the number of concurrent days to compute cumulative deposit and/or withdrawals, the ratio of withdrawals to deposits over a user defined number of days, the frequency and number of selected transactions, and the movement of funds via internally generated consolidations and disbursements between accounts and customers. Account based and customer based reporting routines, desktop displays and ML SHIELD database inquiries are provided.

Visual Case Management is integrated to ML Shield™ and provides analysis assignments, time schedules, note taking, seamless charting and graphing, customized householding, reports, inquiry features, and automated preparation and electronic filing of SAR's.

ML Shield™ is a rapid response system. This means that analysis and prioritizing parameters can be changed in minutes and financial institutions can respond immediately to changes in PATRIOT Act requirements and money laundering occurring at any geographic location, branch, or across any type of account.

Because ML Shield™ is already interfaced to a bank’s database and transaction files, the product is ready to use and produce analysis results within a few days.

Installation includes setup of suspect transaction analysis routines designed to rapidly put a financial institution in compliance.

Design, programming, support and help is provided by U.S. Citizens holding professional accredititions including CAMS.


Includes generation of Customer Risk Ratings

An integral part of ML Sheild™ is the daily generation of customer risk ratings. These rating are a combination of transactional and KYC risk variables, and allow alterts to be risk weighted and EDD to be performed. Please see our white paper on customer risk.

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