Fraud, Risk and Compliance

Detect and minimize exposure to fraud, maintain regulatory compliance, mitigate risk.

Anti money laundering and Fraud

DS - Anti Money Laundering is developed and supported by Digital Systems, the business intelligence software producer. Our application effectively monitors bank customer transactions on a daily basis and, using customer historical information and account profile, provides a "whole picture" to the bank management.

Digital Systems - AML Solution helps to reduce exposure to money laundering and terrorism financing activities. Transaction monitoring can include cash deposits and withdrawals, wire transfers and ACH activity. With DS - Anti Money Laundering, financial and non-financial institutions can create an enterprise wide view of customer's relationship and risks, monitor activity using multiple detection methods, investigate and document suspicious cases, use detailed audit information and produce required regulatory reports. All within an integrated solution built on data management and analytic capabilities.

DS - Anti Money Laundering is an enterprise solution that facilitates the critical task of suspicious activity monitoring using a risk-based approach.

The DS - Anti Money Laundering solution applies advanced analytics and scenarios against an institution's transactional data to identify suspicious behavior. Once identified, the investigative function provides a seamless workflow that increases effectiveness and efficiency.

DS - Anti Money Laundering software helps organisations manage situations of non-compliance and develop a sustainable and cost-effective solution to ongoing DS - AML compliance. The risks of non-compliance include civil, monetary and criminal penalties, increased regulatory attention, and reputational damage. DS - AML is useful for institutions having problems associated with accepting cash for remittance back home when taken against the potential ramifications of AML legislation, what means that the business is very risky.
  • Customer relationship and risks view
  • Monitor activity using multiple detection methods
  • Easily adapt to changing requirements
  • Solution based on open standards
  • Simple integration with key bank systems
  • Online and offline transaction client history analysis
  • Sanction Screening
  • Open interfaces for on-demand integration with external systems
  • ISO 15022 and ISO 20022 message screening
  • Build-in client and transaction archive
  • Complete and customizable AML workflow
  • Complete AML investigation history with audit trails
  • State of art Case management system
  • AML Workflow
    • Customizable multilayer workflow
    • Automatic and manual case creation
    • Fully customizable notification
    • Rule based Case routing
    • Extensive set of rights with fine grained access control
  • Sanction Screening
    • Checks names, identifications and countries
    • Wide range of sanction lists available
    • Possible to define and maintain custom black and white lists
    • Fully integrated in to AML analysis engine
  • Transaction History Analysis
    • Fully customizable and configurable AML analysis engine
    • Highly flexible, based on hierarchical rules
    • Covers all common AML scenarios
    • Extensible for other domain
      • Internal and external fraud detection
      • Customer behavior tracking
    • Adaptable to specific customer requirements
    • Score-based
  • Integration
    • Solution is based on open standards
    • Simple integration with key bank systems
      • Payment message channels for screening ISO 15022 and ISO 20022 compliant messages
    • Support for full customization available if required

Rating

DS - Rating is developed and supported by Digital Systems, business intelligence software producer.

DS - Rating a modern tool for assessment of client and to monitor client's performance compared to segment's standards. It monitors client's activities, his evolution and performance, and helps to foresee his status in the segment of his business compared to competitors, or compared to the whole segment situation. DS - Rating monitors the whole life cycle of the client, since the creation of sales case, till its end. It also allows the bank to evaluate the rating of the client from previous period.

DS - Rating allows to compare plans with real income statement, which helps to forecast future evolution. It is the centralised tool for maintenance and evaluation of the client. It also contains the sales cases' archive.

DS - Rating allows to archive all data for next sale cases. DS - Rating is fully interoperable with other bank systems, such as Digital Systems - Anti Money Laundering or CRM system, etc..

DS - Rating is the independent assessment, aimed to gather all possible information about risks related to the customer, his ability to fulfil his commitment to the bank, therefore: • it's important to identify the risk before providing active business based on client's activities results • it's important to measure the credit risk during the whole contract with the client, by gathering the key information, regular control and analyze his statement of finances.

DS - Rating is important part of credit issuing process, and plays important role in relationship between the bank and the clients or between companies and theirs customers.
  • Solution for client assessment (rating) and credit management
  • Highly flexible and configurable rating
  • Pre-rating primary evaluation of the client
  • Archiving of client's information and ratings
  • Centralized archive of the sales cases
  • Client monitoring and whole cycle of business relationship
  • Comparison of client's capacity against the concordant segment's situation
  • Ability to forecast the developments
  • Ability to work with different balance standards - versions
  • Cash-flow calculation support
  • Monitoring of arbitrary chosen parameters
  • Possible manual interventions of an analyst into the rating calculation
  • History of client's balances and calculated ratings
  • Support for external data for the rating model
    • e.g. industry segment coefficients
  • Support for multiple divisions in the enterprise with custom rating models
  • Versioning of the rating models
  • Possible manual interventions of an analyst into the rating calculation
    • consideration of internal knowledge of the client, e.g.
      • management stability
      • employees fluctuation
      • status in the segment, etc.
    • Multiple balances, even each with different structure, can be displayed and calculated at once
    • Categorization of balances - continuous, final, predictive
    • Support for manual balance input - simulation scenarios
    • Reporting capabilities, e.g.
  • list of clients with incomplete balance data
  • archive of all calculated ratings
  • rating histograms
  • performance of clients across the segments
  • Support for financial data given in any currency
  • Final client's rating can be manually adjusted according to internal business rules

    • Bailiff enforced payments

    DS – EXEC meets strict criteria based on the requirements for secure electronic communication with bailiffs. The software allows employees of the bank or other financial institution to apply rules to exchange information and to ensure synergy in enforcement proceedings.

    With plenty of information from DS – EXEC about the nature and the background of client’s economic activities, it is possible to reliably ensure the entire agenda needed to fully communicate with an automated bailiff system to distinguish between common and unusual operation, including transaction under FATCA.

    "Know Your Client" is perceived as the principle of two-way transparency in the relationship between the bank and the client. DS – EXEC software provides the maximum information to allow the financial institution to identify and eliminate the potential dangers in a timely manner.
    DS – EXEC is a security application that effectively monitors transactions of financial institution customers. These transactions are monitored on a daily basis and, with the help of information about customer and his account profile, they are evaluated and provide to a competent person in the financial institution a comprehensive picture of the suspect financial operations of their clients. In cooperation with DS - Anti Money Laundering, each institution is able to acquire and develop a systematic and global view of customer relationships, including evaluating their potential security threat. Using multiple methods, it is possible to monitor customer transactional activities, investigate and document suspicious cases, or create the required risk statements.

    DS – EXEC uses advanced analytical scenarios including transactional data to help identify suspicious customer behavior. Investigation features provide a seamless workflow that improves efficiency and effectiveness.
    • Support the processing of electronic enforcement proceedings.
    • The system provides for the receipt and recording of requests for co-operation and execution orders,
    • creating and sending responses to received requests
    • The DS – EXEC application is for fully automated processing of co-operation requests sent to the bank by bailiffs.
    • Applications are sent in electronic form in the form of xml messages according to the prescribed format - xsd schema.
    • The application contains an interface for communicating with the banking information system (BIS).
    • The interface is set up to provide the application with the necessary information to generate responses by the bailiff without the need for manual intervention and the solution of incoming requests.
    • As a result of the processing of requests, a response is generated, an xml message indicating whether the bank has or does not have the client to which the bailiff applied for.
    • If the person mentioned in the application is a client of a bank, the information on the status of his accounts is also included in the reply.
    • Applications handle requests for all types of people (natural person, legal entity, foreign persons).
    • All received requests are registered and stored in the database.
    • Part of the system is a graphical user interface - a portal that allows for message processing control and provides search and statistics functionality with collected data.
    • The application is capable of processing thousands of bailiff communications daily and is ready for automated processing of all types of communication between bailiffs and the other party.

    Asset Liability Management

    DS - Asset and Liability Management is developed and supported by Digital Systems, business intelligence software producer.
    The basic objective of asset and liability management is to minimize the volatility of profits generated by "core" business of the bank. The aim is to achieve a basic objective through managing the structure of the balance sheet to have the optimum yield in a defined risk profile and to minimize the impact of the market environment on the bank's income.

    DS - Asset and Liability Management focus on interest rate risk and liquidity risk because they represent the most prominent risks affecting the organization balance sheet (as they require coordination between assets and liabilities).

    The scope of the ALM function to a larger extent covers the following processes:
    1. Liquidity risk
    2. Interest rate risk
    3. Currency risk management
    4. Funding and capital management
    5. Profit planning and growth
    In addition, ALM deals with aspects related to credit risk as this function is also to manage the impact of the entire credit portfolio (including cash, investments, and loans) on the balance sheet.

    The funds transfer pricing system has become a fundamental ALM tool in a bank. It creates the ability to immunize business units from risk and provides the basis for economic and product transparency.

    The process of FTP is designed to identify interest margins and remove interest rate and funding or liquidity risk. Looking at it from the business unit perspective, it effectively locks in the margin on loans and deposits by assigning a transfer rate that reflects the reprising and cash flow profile of each balance sheet item – it is applied to both assets and liabilities. From the ALM unit’s perspective, it isolates business performance into discrete portfolios that can be assigned individualized metrics and facilitates the centralization and management of interest rate mismatches. A by-product is that it effectively allocates responsibilities between the organizational business units and the treasury department.
    The management of liquidity, interest rate risk and FTP curve is the responsibility of Assets and Liabilities Committee (ALCO).
    • Interpretation of liquidity and interest rate gap analysis (structural responsibility of risk management)
    • The balance sheet structure, the share of major products in the balance
    • FTP methodology and FTP rate
    • The portfolio of liquid assets under the auspices of ALM
    • Projections indicators of liquidity and interest rate risk
    • Limits on the maximum size of major asset/ liability categories
    • Controlling liquidity position and set limits in terms of ratios and projected net cash-flows, analyse and test alternative sources of liquidity
    • Controlling interest rate risk and establishing interest rate risk measurement techniques
    • Controlling currency risk
    • Controlling the use of derivatives as well as defining management analysis and expert contribution for derivative transactions
    • Frequency and content for board reporting
    • Liquidity risk management
      • the liquidity management methodology draft
      • setting limits for liquidity management and method of investing temporarily free resources
      • data collection, monitoring, measurement, reporting
    • Determination of buffer limit based on an analysis of historical data
    • Determination of upper and lower limits for liquidity management
      • buying and selling investment instruments and money market products
    • Generate cash flow planning for the selected timeline for the selected menu and the source of funding
    • Generate reporting of the residual maturity of assets and liabilities
    • Interest rate risk management
      • data collection, limits, monitoring, measurement, reporting, Value at risk
    • Foreign currency risk management
      • data collection, limits, monitoring, measurement, reporting, Value at risk
    • Generate reporting of the placement of technical reserves