new aml deployment within - sas institute · 2017. 10. 30. · sas aml for landsbankinn •banks...

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Business BreakfastSAS

®AML

Moscow, 2017

AML Deployment within 3 Months

Case Study: Icelandic Bank


Business BreakfastSAS AML

Moscow, 2017

Christopher GhenneSAS Security and Intelligence

Practice



Moscow, 2017


Iceland


High drama in autumn of 2008

• Landsbankinn hf. was established onOctober 7 2008 when the FinancialSupervisory Authority decided to take overthe operations of Landsbanki Íslands hf.from the Bank's owners and seniormanagement.

• Almost all major financial undertakings inIceland became insolvent at the same time.

• Part of the operations of Landsbanki Íslandshf. were transferred to a new bank,Landsbankinn hf., now 99% owned by thestate.


Total assets of the largest commercial banks before and after the financial crisis


In 10 years the biggest banks grew from 78% of GDP to 990% and in 2007 all the banks were rated AAA by Moodys


Compliance & risk challenges

Before 2008

▪ The old bank was located in 17 countries. The bank opened offices in 15 countries over three years.

▪ The management was not willing to focus on risk and compliance. Everything changed 2009 when all the stakeholders including the regulator and IMF required more focus.

▪ New and complex products, new clients, new areas with different legislation.

▪ No time for proper systems and controls.

2009-2012

▪ After the crises the

compliance focus was on

investigations and

communications with the

regulator and the

prosecutor.

▪ Smaller bank with more

simple products and

currency restriction

2012-

▪ In 2012 the tourist boom

started.

▪ Fintech issues.

▪ New regulations - AML 4,

MiFID2, GDPR, EMIR,

IFRS9, CRD4 etc.

▪ More requirements from

stakeholders.

▪ RISK went from focusing ex

post facto to proactively

managing RISK.


SAS AML for Landsbankinn

• Banks need strong, standardized AML solution to

fight financial crime that can support regulatory

requirements.

• Data warehouse and data feeds to access the right

data with good data quality and data integrity.

• The solution must include:

• Visual analytics tools for identifying patterns and trends.

• Customer Due Diligence to assist with the risk assessment.

• A sanction screening solution.

• Real time sanction screening for SWIFT and SEPA payments.


Implementation Methodology

GO-LIVE IN 12 WEEKS


AML Pre-configured

• Tier 2-3 market – huge

opportunity

• To avoid re-inventing the

wheel on each project

• New Regulation: 4th EU

directive

• Sales advantage of fixed

price offering

Package

Preconfigured for European

market

Best practices

Quick and efficient delivery

SAS Platform

White-box

Data management capabilities

Analytics and visualization


AML Accelerator

Project tasks

Additional configurations

Screens

Workflows

Streamlined scenarios

Additional functionalities

Configuration bug fixes

R&D SAS AML code

AM

L R

&D

AM

L P

recon

figure

d

Advantages– Cost-efficient solution for

simple requirements

– Still can handle ad-hoc requirements on top

– Customers that need a scalable solution can quick start

Targets– Even Tier 1 can benefit from

the Packaged solution as a quick start

– Multi tier targets: Tier 2,3,4


Key for Success: Out of the box scenarios


Key for Success: Advanced Detection Capabilities

Generating valuable datafor statistical evaluation(parameter tuning)

Account and customer profile buildingStoring balance data and all aggregates for several dimensions of transaction data.

Scenario SegmentationAllows different parameters and thresholds for each segment. All scenarios are segmented.

Below the line alertsA table stores ’alerts’ that does not reach thresholds, but are ’close’ to thresholds.

Quicker data processing for senarios using aggregated data

More accurate detection, enabling more sophisticated parametertuning


Success Projects

High standard AML system

Effectiveimplementation

SAS technology

SAS Analytical

capabilities

Packagedoffering

SMEdomain

knowledge



Moscow, 2017

Videohttps://www.youtube.com/watch?v=7Pf9CT6jM10

https://www.youtube.com/watch?v=7Pf9CT6jM10


The AML project, how did we succeedVoice from the Client

• From decision to go live in under 6 months.

• Great support from 3rd party vendor

• Very mature Enterprise DataWarehouse, robust data governance, data stewardship, many datamarts, covers most the whole financial dataspectrum of the bank.

• Great internal operational support.

• Good internal SAS expertise.

• Good internal data expertise.

• Great Professional Services Support from SAS.

• The change in strategy at SAS to push customers towards 3rd party vendors is in our case successful.

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new aml deployment within - sas institute · 2017. 10. 30. · sas aml for landsbankinn •banks...

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