A Cooperative Bank Mitigated Financial Crime Leveraging Coforge Intelligent Automation Expertise
Overview.
A leading Indian cooperative bank faced significant challenges in complying with the Reserve Bank of India's (RBI) stringent Anti-Money Laundering (AML) guidelines. Their existing KYC process was manual and unstructured, hindering both customer onboarding and effective transaction monitoring. Limited data analysis capabilities further hampered their compliance efforts, leading to time-consuming manual report generation and increased risk.
The bank faced mounting challenges in meeting evolving AML regulatory requirements due to their reliance on outdated, manual processes such as:
Inefficient KYC: Manual KYC procedures created a bottleneck for customer onboarding and hindered effective transaction monitoring for suspicious activity.
Data Analysis Struggles: The bank lacked the tools to extract meaningful insights from their data, limiting their ability to identify AML risks proactively.
Reporting Burden & Errors: Manual report generation was time-consuming, resource-intensive, and prone to errors, impacting the bank's ability to meet regulatory deadlines accurately.
Heightened Compliance Risk: The lack of automation significantly increased the bank's vulnerability to non-compliance with RBI guidelines, potentially resulting in financial penalties and reputational damage.
Solution.
To overcome these challenges, the bank partnered with Coforge to implement AMLEasy, a comprehensive and cost-effective automated AML solution.
Key Features of the solution:
Streamlined KYC: Automated and streamlined customer identification and verification at every stage – onboarding, transactions, and ongoing due diligence.
Automated Customer Risk Categorization: Customers are automatically classified into high, medium, and low-risk categories, enabling targeted monitoring and resource allocation.
Simplified Regulatory Reporting: Automated generation of RBI-compliant reports, including Cash Transaction Reports (CTR), Suspicious Transaction Reports (STR), Counterfeit Currency Report (CRR), and Non-Profit Organisation Transaction Report (NTR), using pre-defined templates.
Centralized User & Master Data Management: AMLEasy provides centralized control over user permissions, roles, and master data, simplifying system administration.
Intelligent Rules Engine: A configurable rules engine enables the bank to define and apply specific criteria for identifying and flagging potentially suspicious activities.
Advanced Analytics & Alerts: Leveraging AI and advanced algorithms, AMLEasy provides real-time pattern recognition and generates alerts for suspicious transactions, enabling proactive risk mitigation.
The Impact.
The implementation of AMLEasy delivered significant improvements across key areas:
Streamlined KYC process: Streamlined onboarding and real-time transaction monitoring led to faster processing times and increased transparency for better risk management.
Actionable Data Insights: The bank gained the ability to extract valuable insights from customer data, enabling proactive identification of potential AML risks.
Enhanced Regulatory Compliance: AMLEasy streamlined reporting processes, ensuring timely and accurate RBI submissions while significantly reducing non-compliance risks, penalties, and reputational threats.
Enhanced Security & Fraud Prevention: Real-time monitoring and automated alerts empowered the bank to detect and respond to suspicious activities more effectively, minimizing fraud losses.
