Implementing Robust AML/CFT Monitoring Solutions

Implementing Robust AML/CFT Monitoring Solutions

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  AML/CFTTechnology Solutions Implementing robust, effectiveand efficient AML/CFT Monitoring Solutions Francois Combrinck
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  29% ofTechnology Projectsare Successful: Delivered on time, within budget, within scope, realized value and satisfied stakeholders* * Source: Standish Group Chaos Report 2015 19% ofTechnology Projects are outright failures and failed to meet any success criteria 29% Success 19% Fail 52% ofTechnology Projects meet only some success criteria 52% Challenged
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  58% of Smallprojects using an Agile methodology are successful. Collaboration • Executive Sponsorship • Emotional Maturity • User Involvement Process • Optimisation • Standard Architecture • Agile Process • Modest Execution Expertise • Skilled Resources • Project Management Expertise • Clear Business Objectives
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  • Individualsand Interactionsover processesand tools •Workingsoftware over comprehensive documentation • Customer Collaboration over contractnegotiation • Respondingto change over followingaplan Source: agilemanifesto.org • IncreasedRevenue • Reduced Speed to Market • IncreasedQuality • IncreasedVisibility • Improved Risk Management • Greater Flexibility • Greater Cost Control • More Engagement • IncreasedCustomer Satisfaction • Right Product Source: allaboutagile.com What is Agile?
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  Risk CoverageCompliance Governance
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  Analysis Design BuildTest Implement
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  Analysis Design BuildTest Implement
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  Analysis Design BuildTest Implement Analysis Design BuildTest Implement Coverage • ProductsCoverage • SystemsCoverage Risk •Product Rules • Money Laundering Risks Compliance • Internal Policies • NationalLegislation • InternationalBest Practiceand Standards
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  Quality requirements are Source:A Guide to the Business Analysis Body of KnowledgeVersion 3.o Analysis Design BuildTest Implement “A useful representation of a need” Solution Agnostic Testable Clear and Unambiguous Complete Consistent Prioritized
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  Analysis Design BuildTest Implement
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  Analysis Design BuildTest Implement Technology Process Data Complete Monitoring Control Residency
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  Data ConsiderationsTechnology Process Data Monitoring Universe Control Cloud Most Appropriate Source Transformationsfrom system of record to monitoring Understanding the risk introduced by each transformation Completeness of data
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  Technology ConsiderationsTechnology Process Data Monitoring Universe Control Cloud Most Appropriate Solutionor Solutions Size vs. Sophistication Market Leader or Startup The Myth of the TacticalSolution
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  Process ConsiderationsTechnology Process Data Monitoring Universe Control Cloud Integral to OverallSolution Analysis Processes for Efficient Analysis and Effective Reporting Control Processes to Ensure Effectiveness and Efficiency of Monitoring Change Processes
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  Solution Controls Technology Process Data Monitoring Universe Control Cloud Operational Controls for Effectiveness Controlsthat monitor data completeness Controls that monitor process execution Operational Controls for Efficiency Controls that monitor back-end and front-end stability Controls that monitor quality of alerting Controls that monitor quality of alert analysis Controls that monitor quality of reporting
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  Solution Residency ConsiderationsTechnology Process Data Monitoring Universe Control Cloud Multi-Jurisdictional MonitoringSolutions Desired Level of Control Desired Level of Oversight Data Privacy Cloud
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  Cloud Computing OptionsTechnology Process Data Monitoring Universe Control Cloud Solution HostedOn-Site (No Cloud) Infrastructure as a Service (IaaS) Platform as a Service (PaaS) Software as a Service (SaaS) MoreControl, GreaterFixedCost LessControl,Less FixedCost
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  Total Monitoring Technology Process Data Monitoring Universe Control Cloud Customer Screening Customer Due Diligence Data Quality in Customer Lifecycle Transaction Monitoring Customer Risk Assessment
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  Analysis Design Build Test and Tune Implement
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  Analysis Design Build Test and Tune Implement • AlertQuality • False Positives • Machine Learning • Money Laundering Risk • Coverage • Systems Processes • Business Processes • Completeness • Accuracy • Controls Testing for Effectiveness Testing for Efficiency Tuning for Efficiency Tuning for Effectiveness
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  Greater Control Less Risk Innovative Monitoring
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  Sources • Standish Group:Chaos Report (2015); Summary extracted from https://www.infoq.com/articles/standish- chaos-2015 on 3 October 2016. • Benefits of Agile: Retrieved from allaboutagile.com on 22 October 2016 (http://www.allaboutagile.com/10- good-reasons-to-do-agile-development/) • The Agile Manifesto: Retrieved from agilemanifesto.org on 22 October 2016 • International Institute of Business Analysis: A Guide to the Business Analysis Body of KnowledgeVersion 3.0, April 2015. • Joe Barios:What Every Business Analyst Must Know About Cloud Computing; Retrieved from https://www.joebarrios.com/five-things-business-analyst-know-cloud-computing/ on 23 October 2016. • PriceWaterhouseCooper: StressTesting anti-money laundering / counter-terrorist financing frameworks for the securities industry; Retrieved from http://www.pwchk.com/webmedia/doc/636119486865834411_forensic_anti_money_laundering_oct2016.p df on 2 November 2016 • Keith Furst: How to Conduct an AML System Assessment