Hotscan ISL - Leading Japanese bank drives productivity with Logica

Our client is a leading Japanese bank, and one of the ten largest financial institutions in the world. It operates the most extensive overseas network of any Japanese bank – comprising offices and subsidiaries in more than 40 countries.

The Need

Like all financial institutions, anti-money laundering (AML) activities are an increasing focus of attention at the bank. With heightened regulatory scrutiny and sanctions risk an ever growing threat, coupled with greater operational burden in reviewing filtered messages, the bank was seeking a solution that would drive down risk and manual effort, whilst maximizing its existing filtering technology investment.

The Challenge

Our client faced labor-intensive, manual processes exacerbated by high false-positive hit rates due to risk sensitivity. A team of 10 money transfer employees were spending most of their day taking action on alerts and an hour a day, along with a dedicated full-time compliance staff on “good guy” management, of those entities the bank knew were legitimate.

Our Answer

Logica HotScan Intelligent Self Learning (ISL) solution is designed to work alongside a bank’s existing filtering systems and to discover the good parties in transactions from an analysis of the false positive history. This leads to a marked reduction in false positive alerts without increasing risk and without changing a bank’s existing filtering systems or risk thresholds.

Full transparency allows the administrator to make decisions on whether to accept or dismiss the ISL recommendations and decisions are further safeguarded through a dual approval process. The process of discovering and learning good guys is a batch process and is conducted away from the real-time filtering. This means that there are no resource conflicts or impacts on real-time processing.

A modeling system is provided so that the efficiency gains can be previewed before they are put into place.

Key benefits

• Significant reduction in false-positive hit rate
• Increased efficiency and productivity from time savings and improvement in Straight Through Processing (STP)
• Reduction in employees dedicated to investigation
• Streamline operational processes
• Flexibility to optimize resources and focus on core competencies
• Ease of deployment
• Filtering system independent

To learn more about our Anti-Money Laundering solutions, click here.

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