Streamlined Compliance for Cooperative Bank using Automated Anti Money Laundering Solution
Overview.
A prominent Indian cooperative bank serving 20,000 customers with eight branches and $11 million in deposits faced challenges complying with the Reserve Bank of India's (RBI) Anti-Money Laundering (AML) guidelines. Their unstructured KYC process hampered customer onboarding and transaction monitoring, while limited data analysis capabilities hindered compliance efforts and necessitated manual report generation.
Inefficient KYC process: Time-consuming and unstructured, hindering customer onboarding and transaction monitoring.
Data overload: Inability to derive actionable insights from large volumes of data.
Manual reporting: Time-consuming and prone to errors in generating regulatory reports.
Compliance risk: Difficulty in adhering to RBI's Anti Money Laundering guidelines due to lack of automated tools.
Solution.
To address these challenges, the bank partnered with Coforge for AML solutions to implement AMLEasy, a comprehensive, cost-effective, and automated Anti Money Laundering solution.
Key highlights of AMLEasy:
Know Your Customer (KYC): Streamlined customer identification and verification at various stages – while establishing the relationship, while carrying out financial transactions and when doubts cropped up about the authenticity of customer information collected
Customer Risk Categorization (CRC): Automated classification of customers into high, medium, and low risk categories for targeted monitoring.
Reporting: Automated generation of regulatory reports, including Current transaction report, STR, CRR, and NTR, using RBI-recommended templates.
User and Master Maintenance: AMLEasy managed user and master data. User permission and roles were configured using its configuration management feature.
Rules Engine: It helped the client identify and categorize customers at high/medium/low risk levels.
Analytics: Advanced algorithms and AI for pattern recognition and early warning alerts. It used algorithms and rules for pattern recognition of transactions, monetary instruments, and transaction dates. A powerful combination of proven anti-fraud, anti-money laundering, and business intelligence utilities was also provided to the client.
The Impact.
Impact Area
Achieved Outcomes
KYC Efficiency
Streamlined onboarding and transaction monitoring bringing Increased transparency to manage risks
Data Insights
Highly actionable insights derived from data
Reporting Efficiency
The client got regular reports on high/medium/low risk customers
Compliance
The client fully complied with the applicable laws and regulatory guidelines from RBI
Security
Easy monitoring of financial transactions. Auto alerts on suspicious activities were sent to the client.
