Counter-Terrorism Financing (CTF) Software Banks | FICO TONBELLER

Preventing the Financing of Terrorism in Banks

SironEmbargo, a SWIFT Certified Application 2016

Due to the products and services provided, it is especially banks that are misused by terrorists, terrorist organizations, and other criminals for the concealed transfer of financial funds. International regulations especially oblige banks to match all payments with sanction lists before effecting them.

FICO TONBELLER provides a solution that sustainably encounters the financing of terrorism and complies with statutory requirements. Business partners and existing customers are continually matched with sanction lists. New customers are checked using dynamic questionnaires that can be easily integrated with the existing customer acceptance process. Transactions are checked for relevance to international terrorism, stopped when matching with the sanction list, and immediately forwarded to the bank employee. Duplicate hits are thus prevented. Furthermore, the solution allows efficient management of bank risks and visualizes the overall situation in management cockpits.

Our solution offers:

  • High quality and an adjustable fuzziness algorithm
  • Extensibility through custom checks (business rules)
  • Integration with any payment system of the bank
  • SWIFT-certified solution
  • Integration with any customer base systems
  • Easy alert processing
  • Out-of-the-box integration with transaction monitoring systems (e.g. Siron®AML)
  • Load procedures for all current sanction lists

    Siron®RAS Risk Assessment

    Assess and Manage Risks for the Financing of Terrorism

    Siron®RAS helps banks create and continually develop their risk analyses. Identification, categorization, and the assessment of risks are the foundation of all subsequent activities within the bank to initiate and design comprehensive research programs. Targeted organizational steps may be derived and IT prevention measures implemented. This does not only support individual risk management for the financing of terrorism. Focusing on essential risks may also result in savings through efficient resource allocation and more potent check procedures. Integrated workflows for cross-departmental risk assessment, audit-proof documentation, and customer assessment options complete the picture.

    Key functions:

    • System-based specification of the organizational and business structure
    • Workflow for identification, categorization and weighting of the institution's risks (e.g. customer, product, transactions, country risks)
    • Large database with predefined risks
    • Measures for risk prevention and minimization, including functionality for time and task management
    • Siron®Embargo interface to check the efficiency of monitoring measures and for continual enrichment of the risk analysis through up-to-date key-figures

        Siron®KYC Know Your Customer

        Integrated Risk Classification for New and Existing Customers

        Counter-Terrorism Financing with Siron®KYC

        Customer acceptance is the first step. Due to statutory requirements (e.g. U.S. Patriot Act, Bank Secrecy Act, EU money laundering directive), banks are obliged to gather audit-proof information for natural and legal persons along with their beneficial owners and use this data for risk classification. If the risk incurred through the customer relation is too high the bank must reject the customer. To this end, Siron®KYC uses third-party databases with ready-to-use interfaces:

        • Sanction and watch lists
        • PEP data (information on politically exposed persons)
        • Information on the company's beneficial owners

        Key functions:

        • Flexible integration with existing customer acceptance processes
        • Compliance with statutory due diligence for risk-based customer acceptance
        • Designer to create dynamic customer acceptance questionnaires
        • Customer information is matched with sanction and watch lists to identify criminals, and with PEP databases to comply with enhanced due diligence for politically exposed persons
        • Automatic retrieval of the beneficial owner for legal entities
        • Real-time risk classification through default and customizable rules
        • Siron®AML interface to detect deviations from the initial "intentional" description and the actual behavior of the customer
        • Standardized data interface to the core banking system to check existing customers

          Siron®Embargo Embargo

          Matching Payments with Sanction Lists

          Counter-Terrorism Finacing with Siron®Embargo

          Preventing the financing of terrorism is another of the bank's task regarding compliance and anti-money laundering. Transactions have to be checked for links to international terrorism and stopped. Siron®Embargo matches sender or recipient data with entries in the sanction lists (e.g. names or aliases of terrorists, terrorist organizations, or criminals). Numerous national and international sanction lists are used, e.g.:

          • US Department of the Treasury: Office of Foreign Assets Control (OFAC)
          • EU Common Foreign Security Policy (CFSP)
          • Her Majesty‘s Treasury (HMT)
          • United Nations 1267 Committee's Consolidated List
          • Federal Gazette (Bundesanzeiger)

          Transaction alerts triggered by a match with the sanction lists are "frozen" by the system. This prevents any possible transfer or change of ownership. Transactions without alert are returned to the payment flow. Siron®Embargo logs all checks, steps, and decisions for each transaction related to a case in an audit-proof manner.

          Key functions:

          • Real-time matching of all recipient or sender data with national and international sanctions lists
          • Processing of SWIFT, non-SWIFT, and SEPA payments
          • Extensive search routines and sophisticated fuzzy-matching to identify transactions from a terrorist environment
          • White lists and custom check rules to reduce check expenditure and false positives
          • No IT knowledge required to specify settings and rules

            Siron®RCC Risk & Compliance Cockpit

            Visualization, Management, and Control of Anti-Terrorist Financing Measures

            The growing complexity of basic statutory conditions is a continual challenge for banks in their effort to efficiently organize the prevention of the financing of terrorism. The active management of fraud risks for all connected national and international departments and subsidiaries requires an up-to-date central overview of the most important variables. Through cockpits designed according to the latest findings of perception psychology, Siron®RCC grants banks a holistic view on their risk analysis including the preventive measures and their status. Based on consolidated data from integrated risk-assessment and research systems (e.g. Siron®RAS, Siron®KYC, Siron®AML, Siron®Embargo), measures are calculated and presented using sophisticated visualization techniques.

            Key functions:

            • Fast, daily management overview in accordance with the GRC approach
            • Early detection of shortcomings of and risks in the internal control system
            • Analyses and comparison of trends and risk development
            • Drill-down (e.g. per country, subsidiary, customer category, risk factor)
            • Configurable charts
            • Key performance indicators (KPI) that can be adjusted to the bank's risk situation