Preventing the Financing of Terrorism in Insurance Companies
Insurance companies are also obliged by law to ensure that sanctioned groups and persons are neither directly nor indirectly provided with funds and other economic resources.
FICO TONBELLER offers insurance companies an effective solution for real-time monitoring of all customer relations and compliance with sanctions and embargo regulations. FICO TONBELLER systems support the insurance company's risk analysis and the automated matching of policy holders and related persons with sanction lists. It also matches all incoming and outgoing payments related to insurance contracts. Payments are detained in case of a match. The detained payments are stored in a database from where they are checked and processed. Integrated risk cockpits that are used as information and control components provide a daily overview of the compliance activities.
Our solution offers:
- High quality and an adjustable fuzziness algorithm
- Extensibility through custom checks (business rules)
- Integration with any payment system of the bank (foreign and domestic payments)
- Integration with existing IT systems and other FICO TONBELLER products through a standardized data interface
- Easy alert processing
- Load procedures for all current sanction lists
Siron™ RAS Risk Assessment
Assess and Manage Risks for the Financing of Terrorism
Siron™ RAS helps insurance companies create and continually develop their risk analyses. Identification, categorization, and the assessment of risks are the foundation of all subsequent activities within the insurance company 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.
- System-based specification of the organizational and business structure
- Workflow for identification, categorization and weighting of the company's risks (e.g. policy holder, contract partner, product and process 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 Monitoring of Customer Information (New and Existing Customers)
To protect insurance companies from terrorist-financing risks, it is useful to include policy holders in compliance programs but also all other persons linked to the contract (e.g. claimants). In combination with Siron™ KYC, a workflow-based application for continuous monitoring of customer information, compliance with statutory regulations is secured and terrorist-financing risks are minimized upon conclusion of the contract. Integrated solutions for customer due diligence allow seamless integration with existing processes or systems. Standardized interfaces to third-party databases, sanction and other public lists allow fast implementation of the solution.
- Continual matching of customer information with sanction lists and PEP databases
- Automatic retrieval of the beneficial owner for legal entities
- Real-time risk classification for customers
- Custom risk features through business rules
- Easy integration in contract conclusion process
- Designer to create dynamic questionnaires for policy holders
- Standardized interface to the core banking system to check existing customers
Siron™ Embargo Embargo
Matching Payments with Sanction Lists
Preventing the financing of terrorism is another of the insurance company's task regarding compliance and anti-money laundering. Premium payments 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.
- 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™ ACM Alert & Case Manager
Centralized Alerts and Case Management
As fraud, anti-money laundering, and know your customer functions converge, a more comprehensive view of financial crime data is required. Siron™ ACM allows compliance officers to connect and consolidate alerts and cases from multiple source systems (Siron™ KYC, Siron™ AML, Siron™ Embargo, Falcon and other), breaking down data silos to visually represent relationships between alerts, cases, involved persons, accounts and products. At last, you can realize a 360-degree view of customer activity, and detect financial crimes more easily.
Siron ACM’s advanced workflow and powerful rules editor eliminates manual steps, further increasing productivity, while automated reporting streamlines the filing of Suspicious Activity Reports (SARs) with government authorities and regulators. Defined processes also ensure the uniform handling of similar alerts and cases and sustainably improve the quality of the work.
- Centralized hub for handling of alerts from various source systems, and for investigative management of cases
- Queuing & tasking capabilities to effectively manage workloads and prioritize issues
- Process automation with powerful rule editor to tailor-dress workflows for various types of alerts and cases, and approval processes
- Unified 360° view on suspicious entities with all its alerts and alert details, including customer relations, related accounts, and involved cases
- Regulatory filing (STR, SAR, CTR etc.)
- Comprehensive reporting around alerts and cases (alerts by scenario, case time span, etc.)
- Full audit trail of all procedures
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 insurance companies in their effort to efficiently organize the prevention of the financing of terrorism. The active management of 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 insurance companies a holistic view on their risk analyses including preventive measures and their status. Based on consolidated data from integrated risk-assessment and research systems (e.g. Siron™ RAS, Siron™ KYC, Siron™ Embargo), measures are calculated and presented using sophisticated visualization techniques.
- 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 insurance company's risk situation