Oracle Watchlist Screening

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2 <Insert Picture Here> Oracle Watchlist Screening Mike Matthews 3 rd party logo 2

3 Topics Screening trends & needs Increasing screening data accuracy Reducing false positives Screening international data Prioritizing highest potential risks Shortening review cycles Q&A 3

4 Oracle Watchlist Screening: Selected Customers 4

5 The 2 nd Wave of Compliance Transaction Modelling (TM) Detect suspicious behaviour Pattern recognition Statistical modelling Behavioural analysis M costs Transaction Screening (TS) Message Parsing Watch list filtering (basic) M costs Many failures: Troubled/lengthy deployments Missed Sanctions hits False Positives +++ High acquisition & operational costs

6 Leading the 2 nd Wave Transaction Modelling (TM) Detect suspicious behaviour Pattern recognition Statistical modelling Behavioural analysis M costs Transaction Screening (TS) Message Parsing Watch list filtering (basic) M costs Many failures: Troubled/lengthy deployments Missed Sanctions hits False Positives +++ High acquisition & operational costs Customer Screening (CS) Sanctions, PEPs, Risk screening Vast quantities of customer data Disparate systems, data structures, formats, languages, alphabets Breadth + depth of data analysis & search capabilities Intelligent data optimization recognized as critical Advanced algorithms required for data variance, anomalies, data quality, transliteration and transcription Widespread recognition that greater accuracy = large reduction in false positives Compliance cost reduction S-M-L: all sizes - all sectors not just for Tier 1 s

7 2 nd Wave Requirements: 1. Maximum Operational Effectiveness False positives dramatic reductions High accuracy Any data / anywhere Zero screening limitations (frequency, volumes, watch lists) Deploy anywhere Multi-lingual, multi-cultural environment 2. Optimum Cost Efficiency Risk Scoring, Case Management: reduces review (cycle) time Compliance workflow, case routing: speeds case workload Advanced language capabilities: reduces costs for international business Scales from a laptop to the Data Centre 7

8 New markets...new challenges Expanding Boundaries of Risk Customers Suppliers Employees Partners Contractors Vessels Ports Universal Risk Screening Requirements Increasing Legislation, Regulation & Guidance EU 3 rd MLD USA PATRIOT Act BSA POCA FCPA OFAC EAR UK Bribery Act FATF JMLSG Financial Services Law Firms Mobile Operators Tobacco 3PL/Trade Export Gambling MSBs Auto Finance Broader Markets Facing Legislation 8

9 Oracle Watchlist Screening 9

10 Introducing Oracle Watchlist Screening What is it? A comprehensive risk and compliance screening application Chosen by over 160 customers globally Agnostic to data being screened Screens in batch and real-time Comprehensive reviewer and management tools How does it benefit you? Reduces the cost of meeting compliance obligations Reduces the chances of undetected risk sources Simplifies screening of international data Minimizes vendor dependency Makes it easier to demonstrate enhanced due diligence 10

11 Oracle Watchlist Screening: unparalleled screening accuracy 11

12 Accurate Data = Accurate Screening 1. Overfilling of name data 2. Poor spelling of name and address information 3. Multiple names stored in a single field 4. Name information misfielded into addresses 5. Date of Birth information in various formats 6. Entities and individuals mixed together 7. Non-standard name constructs 8. Poorly fielded address information 9. Non-standard country information 12

13 Customer Data Preparation Down load Understand Structure Re-structure Standardise Enrich Dedupe Misused Fields Gender Analytics ISO Country Alias Tagging Split Records Occupation Analytics YOB Inference Name Analytics Linguistic Equivalency Entity Hints Phrase Profiling Country Inference Look ups Spellings Phone No. Analytics Country From City Analytics 13

14 OFAC List 14

15 10 Aliases, 2 DOBs 15

16 19 Aliases, 4 Locations 16

17 Simplifying international data screening New geographies new risks PEPs and their associates Embargoed Countries Multiple writing systems in use Oracle Watchlist Screening Optional Language & Country Packs 45 languages & 57 countries Cyrillic Greek Chinese Arabic Hangul (Korean) Kanji, Hiragana and Katakana (Japanese) 17

18 Transliteration Example: Greek Mostly character level but with some complex rules Uses the standard EDQ Transliterator processor with the Greek to Latin option, and a few simple additional rules (removing Diacritics etc.): 18

19 Name Variant Recognition Example: Russian Dictionaries are provided to recognize and match different transliterations of the same Russian name (that might exist on lists) >>> and also Nicknames > 19

20 Transcription Example: Arabic For Arabic, transliteration does not work e.g. محمد is transliterated by most methods to mhmd but really represents Muhammad Direct transcription is required. This uses a dictionary which recognises more than 200,000 names, and over 5m transliterated variants of those names 20

21 Prioritizing highest potential risks Risk Scores provide measures of relative risk of doing business with individuals or entities Ensures priority is given to reviewing high risk individuals/entities Automates the closure of low confidence/low risk matches avoiding unnecessary review work Ensures effective use of resources by prioritising work activity Reduces the burden maintaining PEPs whilst continuing to demonstrate enhanced due diligence 21

22 Externally calculated Risk Scores may be used for example Safe Banking Systems Risk Score Original Watchlist record SAFE EI risk score 22

23 Shortcuts to workflow MI reporting Filters provide links to investigators work queue Cases ranked in priority order presenting highest risk first 23

24 Configurable Workflows Standard 4-Eye Workflow Customizable 24

25 Click to confirm match decision and add comments Customer Data Watchlist Data Hyperlinks to Watchlist profile, web search & other external sources Match rules tells us why this case has been flagged as a potential match Audit log and comment capability provide a full investigation history 25

26 Monitor progress of case investigations Manage workload across the team 26

27 Link to Case Management for fully audited and tracked investigations Realtime screening of individuals and entities Match score and risk score highlight degree of risk 27

28 Q&A 28

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