TONBELLER AG extends its solution portfolio to fight financial crime and the financing of terrorism | FICO TONBELLER

TONBELLER AG extends its solution portfolio to fight financial crime and the financing of terrorism

New solution Siron®Know Your Customer closes the gap in the fight against financial crime

Bensheim, Germany, January 20th 2011 – TONBELLER AG adds Siron®Know Your Customer (KYC) to its Siron®compliance solutions portfolio. The solution supports financial institutions in complying with the local and international laws and regulations to ensure compliance with statutory check and risk assessment requirements for new and existing business relations also known as Customer Due Diligence (CDD).

Siron®KYC helps financial institutions to avoid damage of their reputation and therefore prevents customer and business loss as well as economic damage of other customers and shareholders. Siron®KYC covers the entire process of new customer acceptance from standardized electronic input of customer data, automated matching with PEP and embargo lists generating a customer risk rating and may easily be integrated in the existing infrastructure.

Siron®KYC offers a very flexible setting. It can either be used as a stand-alone solution or could be integrated with Anti Money Laundering or Anti Fraud solutions like Siron®AML and Siron®FD. The solution is also open to integrate with variety of third party solutions e.g. for verification of identity documents.
Through an automated and standardized information input, the solution leverages efficient business processes. Based on easy to create and individual flexible questionnaires for customer acceptance, Siron®KYC enables compliance with legal requirements to risk rate a customer and perform the appropriate due diligence for the business relationship.

Once the customer acceptance has been completed, it gives the financial institution the capability to continuously monitor the requested customer. The solution monitors the risk appetite of the relationship which may change overtime, notifying the compliance department to perform Enhanced Due Diligence (EDD). Siron®KYC is capable of handling natural and corporate clients and offers the capability to process parent trees to identify the ultimate beneficiary owner.

Laws and Regulations
Apart from the obligation to comply with legal requirements, financial institutions cannot afford to have bad press on supporting money laundering or criminal activities, even if they are misused for this purpose without their knowledge. Hence, financial institutions are highly interested in introducing adequate internal control measures and systems. The regulations according to the KYC principle are incorporated in guidelines and laws, such as the US Patriot Act , the Bank Secrecy Act (BSA) and the 3rd EU Money-Laundering Directive.

Money Laundering, Financing of Terrorism, and Fraud
Due to legal requirements, financial institutions must ensure for natural and legal persons and their beneficial owners that none of the accepted customers poses a threat to the institution in terms of criminal activities and the financing of terrorism. Financial institutions are obliged to apply the Know Your Customer principle to all unknown customers prior to customer acceptance in order to recognize the risk potential originating from the customer relation. This is the basis for risk-based monitoring of customer relations regarding money laundering, the financing of terrorism and fraud.

Accelerate Business Processes, Provide Information
Financial institutions are legally required to uncover information, such as the purpose of a business relation or the origin of funds. Furthermore, it must be decided whether the potential customer is a politically exposed person (PEP), since business relations to this group of people are subject to enhanced due diligence. In addition, the institutions must guarantee that the person data is matched with international embargo lists in order to prevent business relations with criminal individuals, organizations and/or to sanctioned countries.

This information and data is already acquired and archived for new customers by the institutions. However, the data is mainly used for documentation purposes and is not made available for use in IT systems. The employees responsible for the fight against financial crime have no opportunity to include the customer information, which has been obtained during customer acceptance, into IT-based research systems to detect financial crime. Hence, plausibility checks, the verification of the information supplied, as well as systematic risk classifications of customers based on their actual behavior are not feasible.

Siron®KYC Provides Security and Continuity
This gap is closed by Siron®KYC . The solution provides a standardized electronic input of customer data, automated matching with PEP and embargo lists on customer acceptance and enabling the institution to classify the risk. This leads to specific instructions for account managers. In case of high risk the money-laundering officer is notified by automated e-mails.
Based on the checked data, the decision to accept or reject customers can be taken immediately, followed by the risk classification (e.g. low, medium, high or unacceptable).

This analysis is done in real-time during customer acceptance. From this point in time, the information provided during customer acceptance is continuously checked for deviations in actual customer behavior. Significant deviations from the expected customer behavior recorded during customer acceptance compared to the actual behavior should raise the question: "Has the customer provided incorrect information or what is the reason for the change in behavior?" which could be an indicator for criminal activities that have an impact on the institution, its customers, employees, and shareholders.

Information from the Beginning – Online and Real-time
Siron®KYC processes all relevant data and information acquired and checked during the customer acceptance process according to institution-specific risk classification for money laundering, fraud and the financing of terrorism.
For ongoing risk monitoring, this data is automatically sent to Siron®AML, the money laundering research system and to the system for the detection of fraud, Siron®FD.

The huge benefit of Siron®KYC is the possibility for immediate risk assessment of the new customer relation. The information on person and business relation supplied by the customers can now be compared with their actual behavior. If the customer behavior shows a significant deviation compared with the stated behavior during customer acceptance, the risk classification can automatically be increased and an alert will be send for revision of the customer. Based on internal and legal procedures adequate measures can be taken. By doing so, the customer relation can be monitored on an ongoing basis and therefore compliancy is ensured according to local and international laws. 

Torsten Mayer, managing director of TONBELLER AG is convinced: "With Siron®KYC, we enable financial institutions to meet the legal requirements of the KYC principle and ongoing risk monitoring at a stage as early as customer acceptance and to assess their risks with specific respect to financial crime. TONBELLER therefore can considerably contribute to the prevention of fraudulent actions, money laundering, and the financing of terrorism."

Mayer continues: "The solution ensures that legal requirements are fulfilled and business processes remain efficient at the same time. Furthermore, financial institutions are protected from potential damage resulting from criminal activities and the reputational damage going along with it. Our customers can enable themselves to identify illegal activities at an early stage and take appropriate counter measures. We enable our customers to proactively detect potential risk at an early stage – an important step for taking action before a crime is committed and to not just react when the damage actually occurs."

Siron®KYC is available in English, German and Spanish. Further languages will follow. The solution can be used with all common operation systems, such as Microsoft Windows, Linux, UNIX, and Solaris, and supports databases such as Microsoft SQL Server, Oracle, and IBM DB2. 

About TONBELLER
TONBELLER is an international software and consulting company that supports over 1000 clients in 50 countries. In close cooperation with its global partner network TONBELLER meets regional needs regarding know-how and customer expectations. TONBELLERs cross-platform solutions consist of specialized consulting, applications for the fight against financial crime, and tools to manage complex and dynamic decision processes. Sustainability in leadership and software development is an integral part of the company culture, founds the basis for a long-term customer relationship and protects investments. TONBELLER solutions help to manage complex and dynamic data, minimize risk and comply with legal requirements. Through innovative technology and consulting, TONBELLER over 100 highly qualified and specialized employees secure productive deployment and operation of the solutions. TONBELLER is located in Bensheim, Germany.http://www.tonbeller.com

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