For custodian banks, the process of performing checks on payments in order to ensure the legitimacy of the ultimate beneficiary is a common, but time-consuming practice.
For more conventional retail or fintech organisations, the challenge is to avoid becoming the platform of choice for criminal gangs to carry out money laundering, or being used as a conduit for terrorist funding.
Indeed, the process of understanding who your customers are doing business with is becoming increasingly important. Failure to deliver this can result in massive reputational damage and regulatory fines.
WHAT DO WE NEED TO DO?
Robolitics™ can perform real time monitoring of inbound or out bound instructions, insuring you comply with faster payment regulations or PSD2, without breaching AML requirements.
Robolitics™ payment monitoring can auto check payments against FATF Countries, PEP and Sanction listed individuals and internal black and white lists to ensure that you are monitoring appropriately.
The challenge for any senior transaction monitoring compliance manager is clear how to provide increasingly sophisticated, flexible and dynamic monitoring in real time across asset classes, and across communications channels whilst reducing cost.
Robolitics™ is a sophisticated real time monitoring platform. It uses basic rules for different types of reportable abuse. We keep these rules simple but then use AI and Machine Learning to identify potential issues and alert these to the compliance team.
We also allow you to tune the sensitivity of these alerts to align them to the real risks in the business, so that you can focus on the real issues rather than losing them in a myriad of false positives.
ROBOLITICS™ DEILVERS A STEP CHANGE
Robolitics™ has been designed to meet this challenge by focusing on leveraging the best of the old and the best of the newand providing cross-asset class and cross-regulation monitoring of suspicious behaviours. Robolitics™ has been designed from the bottom up to deliver a step-change improvement.
Rule based behavioural model
We have a number of standard alerts based on typical risk behaviours. (Note: We can also create new alerts as new behaviour and risks become apparent through our RDK (Robot Development Kit)). These alerts can then be adjusted in real time to understand sensitivity of the rule; this we call “Machine Supported Learning”.
Machine Learning Model
The Machine Learning model is a “trained module” that learns on the job. It provides the base functionality of alert reduction – e.g. not surfacing repetitive or repeat alerts.
Artificial Intelligence Module
Robolitics™ reviews compliance officers' responses to alerts and learns on the job. It compares similar types of alerts either suggesting categorisation, making a recommendation for next best action, or creating a cluster of alerts so that multiple alerts can be managed faster.
Neural Networks / Deep Learning focuses on looking for patterns across the all transactions and or alerts. These often appear as previously unseen issues or coincidences.
These can then be surfaced to the compliance analyst rather than the compliance officer for investigation to identify if this is a real risk. This process is especially good at identifying new risks or uncovering unexpected patterns.
HOW DOES ROBOLITICS WORK
Robolitics™ is a monitoring, alerting, and reporting platform. It contains a complex data model, over which multiple, easily tuneable “Robots” search to identify issues aligned to traditional models of “best practice” and then uses AI to further filter, cluster and categorise these events in order to remove false positives.
Traditional solutions use cascading filters to monitor for behaviour whilst managing down a set of alerted transactions to a manageable set of alerts. Often, these rule sets become so complex and intertwined that no one understand how they work. They become fossil histories of risks the business has faced, rather than addressing current business threats.
Our solution originally based around the 24 reportable forms of market abuse described in MAD2/MAR provides real time monitoring across asset classes. This set of rules can be extended using our RDK (Robot Development Kit) which simplifies the process of creating and tuning rules.
You can also tune these rules according to the nature of the your business and market conditions to deliver risk based monitoring.
The Robots then “learns on the job,” looking for transaction patterns, surfacing hidden relationships, linking alerts between parties and understanding client activity to improve the identification of real risks.
You can quickly create a new alert based on suspicions or identified behaviours of either clients or staff. As a result, you can be sure that repeat behaviour is identified and addressed quickly. Over time these alerts mature as the AI identifies and removes repetitive tasks.
Robolitics™ also cuts investigations time on alerts by
- Surfacing a comprehensive data set – covering the transaction, the market, and historical behaviour
- Clustering similar issues – using AI to group alerts allowing them to be handled more efficiently
- Proposing best action based on previous responses to similar alerts
- Delivering customer sensitive compliance - enabling you to tune alert sensitivity to the client risk profile
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