Compliance Product. ecompliance Process Management (ecpm)

Transcription

1 Compliance Product ecompliance Process Management (ecpm) December 8th 2014

2 1 ecpm --- An electronic Compliance Tool par excellence The ecompliance Process Management (ecpm) System by Eurospider is the par excellence solution in respect of the regulations against money laundering, terrorism financing, tax evasion and tax fraud. ecpm is assisting the compliance officer in being compliant with the growing number of regulations, which are becoming more and more complex.

3 2 Complete Process Chain A major advantage of the ecpm system is that it covers the entire process. It is automatically capturing sanctions lists, profiles of politically exposed persons (PEP s), indicias for illegal activities (CRIME), and FATCA/CRS information (TAX). The ecpm server version automatically updates the KYC Records every night. The scanning of customer lists can be executed either manually or automatically according to a customized schedule (server version only). All matches are stored in a database and enter a workflow. Within this workflow, compliance officers verify the matches by distinguishing between true positives and false negatives. In the case of true positives, he or she assigns a risk category (SANCTIONED, PEP, CRIME, TAX) and then closes the alert. Closed alerts are documented with PDF s and strored in an archive from where it can be retrieved any time. This audit function completes the process chain. 3 Automatization In the case of ecpm, electronic assistance means the avoidance of manual work whenever possible. The automatization implies standard procedures which are, as opposed to manual procedures, less error prone. ecpm provides a leading edge process automatization. This includes among others the automatic update of the KYC Records and the automatically executed scans. Another important aspect of automatization is related to whitelisting. Frequent scans do not impose more verification work because of intelligent whitelisting. Alerts have have to be verified only, if relevant information has changed since the last verification.

4 Not to mention the outstanding matching quality minimizing the false alarms, i.e. the false positives. The matching quality reduces significantly the verification work. 4 Easy installation and integration Another advantage of ecpm is the minimal impact on the internal IT. The integration of the CRM system into the ecpm system is based on a simple transfer of CSV-files (Comma Separated Values). Most CRM systems support the export of CSV files in a simple way. ecpm includes an archive with auditable documents and other data. 5 Overview The following picture shows a simplified view on some roles and use cases. The Scan Administrator (SCA) is responsible of the scanning of customer lists, i.e. the so called SCAN s. The SCA defines the origin of the customer

5 lists and either defines the scanning schedules (e.g. every Sunday at 22:00) or triggers the scans manually. The Back Officer (BO) or the Chief Compliance Officer (CCO) can CHECK and submit single customers (persons or organizations) as alerts to the verification workflow. All scanned customers, including the manually submitted customers, are journalized by the system for the sake of auditability. By means of VERIFY, the CCO investigates the matches of an alert of the verification workflow and decides whether it is a true or false alert. Is it a true positive or false negative alert, the CCO also has to assign the corresponding risk categories, such as SANCTIONED, PEP, CRIME or TAX. The CCO can RETRIVE scanned and submitted customers and check the details such as status (new, work in progress, or closed), verifier, time, assigned risk criteria, etc. Finally, the CCO can generate various reports. Among them is the management summary report, containing the number of alerts grouped by status and the number of customers grouped by the assigned risk categories. Other reports contain the list of customers which are PEPs or the list of open alerts, i.e. alerts that haven t been verified yet. There are more roles and use cases as shown in the diagram above. The user manual describes all roles and use cases in detail. 6 Server and Desktop Version The ecpm desktop version is an inexpensive version where client and server are packaged. It can be used by several users, but not simultaneously. Updating records and executing scans are issued manually. The server version is accessible simultaneously by several clients. The automatic update of the records and execution of automatic scans can be configured in a flexible way.

6 Both versions contain an embedded database; hence, there is no need for an extra database. All data is stored in files in a directory which can be backed up in a simple way. 7 Quick Check (optional) CPM is offering optionally a so called Quick Check which can be made accessible in the intranet of the financial institution. Relationship managers can benefit from the Quick Check at an early stage of the on-boarding process by checking potential risks. The Quick Check function is based on daily updated content and on a matching profile specified by compliance. In this way, unwanted surprises are avoided to a large extent. The data of the prospect is transmitted stricly internally and complete confidentaility is guaranteed as opposed to an online check. For usability reasons, an intuitive query form has been chosen.

7 The following screenshot shows the result of a quick check which can be stored or printed

8 8 Transaction Filtering (optional) Transaction filtering is an optional ecpm service to check transactions. The following information is transmitted to the service: transaction id, ordering customer, beneficiary customer, remittance and other Information, other fields. The service returns either negative (no match) or positive (possible match). In the latter case the matching fields are ruturned as well. To minimize false alarms, the partial matches are weighted and the decision positive/negative depends on the overall score. 9 Client-Server Version Requirements Server Hardware (optimal) RAM: 4096 MB CPU: 4 Cores, not older than 3 years Storage: The software and the data requires at least 20 GB (depends on the size and the frequency of the scans) Operating System Recent Linux distribution (any distribution supporting the software below) Windows Server 2008 or newer Software Java SE 7 Apache HTTP Server 2.x Apache Tomcat 7.x Client Hardware (optimal) RAM: 512 MB CPU: Not older than 5 years Storage: The software requires at most 100 MB (Java Web Start)

9 Operating System Windows XP or newer OS X Linux Any operating system supporting Java SE 7 and the Java Web Start Technology Software Java SE 7 10 Desktop Version Requirements Desktop Hardware (optimal) RAM: 4096 MB CPU: 2 Cores, not older than 3 years Storage: The software and the data requires at least 20 GB (depends on the size and the frequency of the scans) Operating System Windows XP or newer Interested? Do not hesitate to contact Peter Schäuble Address: Eurospider Information Technology AG Schaffhauserstrasse Zurich, Switzerland Telefon: Internet: Mail: peter.schauble@eurospider.com