Aml Use Case Hero

As money laundering operations and terror financing networks become more sophisticated, investigation and global regulation of criminal activity continues to grow in complexity. In the face of rapidly changing and expanding anti-money laundering (AML) regulations, financial services organizations need a more transparent, consolidated view of customers’ financial activity. They also need access to flexible tools and connected data that place customers’ ongoing behaviors in the context of their relationships and associated activities.

The challenge

Costly, complex, time-consuming

Financial services organizations are tasked with self-monitoring for all AML activities — an increasingly costly and time-consuming responsibility that is virtually impossible to accomplish through existing manual case investigation processes. Even with hundreds of investigators dedicated to the task, financial organizations often struggle to meet the 60-day deadline for filing Suspicious Activity Reports (SARs).

The 50 largest global banks paid over $321 billion in penalties for non-compliance from 2008 to 2016.

Building an adequate case profile for investigation currently requires ingesting and making sense of silo-ed data from numerous internal systems and external sources. The process of verifying a customer’s identity or involvement in suspicious activity thus becomes an attempt to manually connect the dots with disparate data — disruptive switching from system to system and vendor to vendor, often with a latency in downloading data that can draw out case preparation for up to 18 hours. Further, a lack of visibility and context into current investigative work often results in costly, duplicate work: two investigators unknowingly researching the same person as a result of separate alerts triggered.

This manual, fragmented endeavor limits not only a team’s ability to take action in a timely manner, but their ability to identify suspicious activity at all. The typical fix of hiring more eyes to handle demand and complexity fails to eliminate the underlying operational and organizational inefficiencies, adding even more cost to compliance rather than solving workflow challenges to meet regulatory demands and reduce risk.

The solution

Consolidated, automated, contextualized

Enigma Financial Services Compliance automatically links and centralizes data to increase transparency and introduce cost- and- time-saving efficiencies. Leveraging a data ingestion and automation framework, Enigma’s technologies streamline internal information gathering as well as parsing and standardization from external data sources, including Enigma’s public data library, to provide clients with valuable signal and supplementary intelligence.

Unlike traditional case-driven approaches to compliance, Enigma shifts the entity to the focal point of decision-making. Through a series of consolidated views and visual interfaces, Enigma’s solution transforms each customer’s public data footprint, relationships, and transactional activity into a comprehensive narrative to augment AML investigations and power additional regulatory compliance streams such as Know Your Customer (KYC) and sanctions.

With 100,000 public datasets and billions of records, Enigma’s data library provides broad insight into the identities and activities of organizations and individuals with whom you do business. Our repository contains key datasets such as Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) and Sectoral Sanctions Identifications (SSI) as well as data from sources including US Departments of Commerce (DOC) and Health and Human Services (HHS), Central Intelligence Agency, Bureau of Industry & Security, HM Treasury, and United Nations Office on Drugs and Crime.

Enigma’s solution blends public and vendored data with existing customer data into a seamless user interface, enabling teams to access a wide range of data while maintaining total control and flexibility around which sources to incorporate into investigations.  This structured data then powers analytic models to verify identities and surface new relationships.

For example, second order relationships such as a subject’s employer organization can be automatically cross-referenced to reveal connections to AML case histories and government watch lists. Or patterns of relationships between a business found in Enigma public data and traditional company reports may indicate shell companies in a laundering ring. While an alert may be related to one entity, behavior related to another account may be the trigger. A mapped network view enables investigators to see behaviors in the context of related entities and identify new connections or patterns.

Enigma Financial Services Compliance creates a unified investigation environment that integrates with case managers and workflows in a non-disruptive manner, enabling teams to view all data relevant to a case, gather and annotate evidence, conduct analysis, and create documentation through interfaces that interact with existing solutions and databases. This centralization increases visibility, allowing managers to measure all actions and monitor investigation performance through an operational dashboard. Additionally, these metrics and increased oversight allow for creation of a case complexity score to help leadership prioritize resources and ensure the right people are working on certain cases.

The results

Reduced risk, cost-effective compliance

With automated data ingestion, ontology management, and linking, investigators have a robust library of data to work with at the start of a case. Enigma’s flexible integration with existing infrastructure workflows provides teams with access to more (and more diverse) information much faster—without extensive training or onboarding time. Not only can organizations take action sooner —and reduce case age—but individual investigators can spend fewer hours per case and tackle more cases per day.

The unified investigation environment increases accuracy and transparency both internally and externally. With a centralized view of customer data and relationships to other products and customers, a robust audit trail, and contextualized customer profiles, financial services organizations are able identify more suspicious activity and achieve compliance at a lower cost.

Enigma’s entity-driven approach powers more efficient AML investigations and provides the flexible data framework, linking capabilities, and infrastructure to leverage compliance data as an enterprise asset for a wide range of regulatory activities including risk scoring, sanctions, Know Your Customer (KYC), Customer Identification Programs (CIP) and anti-corruption.