- UK company to clean up with innovative anti-money laundering system
- Major launch to over 80 financial institutions on 19 March, Barbican, London
London, England – A UK company is aiming to help pull the rug from underneath financial crime following the introduction of smart software, which helps financial institutions to prevent money laundering. STB Systems Limited, a specialist in regulatory and compliance systems, today introduces "STB-Detector", an advanced system that snoops through computer data to unearth evidence of money laundering activity and at the same time helps account officers ensure they are not doing business with criminals in the first place.
Estimates suggest that $0.5 - $1.5 trillion is laundered annually – money that ends up in the hands of criminals. Added to this, the new Anti-Terrorism, Crime and Security Bill means that financial institutions are further required to be on the lookout. A group of some 80 financial institutions will attend a full launch event at the Barbican, London on 19 March 2002.
* Editors' note – if you wish to attend this event please contact Media Link.
The new system, which is already being installed at institutions in the USA, is the first to combine several key controls in one package, specifically including applying very detailed account opening controls, secondly tracking and profiling of all account activity - not just wire transfers, (which is all that has been traditionally carried out in the past) and thirdly managing review and follow-up workflows of suspicious or poorly documented transactions. Finally, and crucially, the software is the first designed to pull information from a diversity of existing systems, meaning that installation is simple and that institutions installing the system are not required to create a complex "data warehouse".
This announcement comes just a short period after the introduction of the USA Patriot Act designed to tighten the net on the financial activities of terrorists, and after the huge increase in focus not just in the USA but internationally on terrorist finances arising following the September 11 attacks, all generally aimed to put an end to financial counterfeiting, smuggling, and money laundering.
The arrival of STB’s product, which is ready to implement, having been in development well before 911, means that financial institutions can immediately be seen to be ahead of the serious increase in regulatory pressure being applied right now in 2002.
At its heart, STB-Detector contains a comprehensive set of rules that describe money laundering activity and which can be updated continuously. The software can probe into different data throughout a financial institution, looking for activity that matches the rules. Alerts are issued to prompt compliance managers to investigate and reconcile or report to the authorities. The open database nature of the system also allows clients to manage customer documents, identifications, recorded interviews and other verifications on line without stepping over to the filing cabinet.
"STB is well versed in compliance reporting, being market leaders and one of just five companies to be recognised by the Bank of England for electronic reporting of regulatory data" said Michael J Thomas, Managing Director of STB Systems Limited. "We have created the most ideal system for our current and future customers, being affordable, scalable, and easily installable. We are here to help financial institutions comply with their obligations cost-effectively, and this is what STB-Detector will do. We hope STB can help make a real difference in the fight against financial crime and the movement of terrorist funds."
STB Systems Limited is one of the world's leading vendors of automated compliance reporting solutions for the financial markets. Founded in 1984, STB is market leader in London, New York and Hong Kong.
STB's solutions are designed to automate the presentation of critical controls that protect banking businesses, handling both internal and external reporting to satisfy relevant regulatory bodies. The company is one of just five approved by the Bank of England for electronic reporting.
STB's solutions control and consolidate multiple data sources. The use of rules-based technology ensures a stable product, and allows for development of new solutions quickly and efficiently to meet the constantly changing demands of regulatory, management, risk and other compliance reporting.
Ray Jones / Peter Linton
+44 118 984 3386
Ray@medialink.co.uk / Peter@medialink.co.uk
STB Systems Limited
+44 20 7403 2188
STB describes some of the tricks used by organisations to disguise money laundering: -
The chameleon: camouflaging laundering activity amongst potentially legitimate business activity. So whilst you've known your customer for ages, you need a system to help you spot that they appear to have started something unusual. STB-Detector will spot the unusual for you.
The slider: hiding laundered funds in someone else's entirely legitimate business. And we don't just mean in your perfectly legitimate banking business! Your long standing client's firm may well be unwittingly handling criminal money, and adding probity to it as a result so you would never suspect them. STB-Detector will wave the red flag.
Behind the mask: False identities, invoices, travel documentation all help to confuse you. By disassociating himself from illegally obtained assets the launderer can expect them to still be there when he gets out of prison! STB-Detector's best practices check boxes and memo facilities allow you to record that you are sure who you are dealing with.
Fancy footwork: exploiting different international legislatures and enforcements: globalisation of financial services means that the launderer can easily move funds between jurisdictions many times and at low cost, and with various jurisdictions having different bank secrecy laws, identification and disclosure requirements, the launderer can plot a low-risk route for the money. STB-Detector automatically consolidates wire transfers as well as account movements and compares and contrasts activity with peers and with exception limits to help detect layered laundered funds.
Keeping it anonymous: it's got to be cash, jewellery, or a numbered personal account: if it's not got the criminal's name on it, then he's innocent isn't he? Well, maybe not. You need to be on the lookout for strange or unusual use of anonymous asset types! STB-Detector automatically reports unusual transaction types for each individual customer, or for the customer's peer group.
Key Benefits of STB Detector
In one package, STB-Detector provides clients with the following key benefits:
· Automated account opening due diligence assurance; system monitors attempts to bypass account opening verifications
· Monitoring account movements as well as wire transfers; provides banks with additional assurance that they are doing all they can to check for layering
· Depending on the nature of specific data available, which will depend on the way in which banks' sub-systems store advices to receive, forward dated payments and collections data, STB-Detector can provide pre-emptive warnings of transactions that may merit compliance attention
· Automated peer group comparisons; reasonableness is checked according to the nature as well as the relative size of the transaction
· Historical analyses; transactions are compared to historical account activity and unusually large or merely atypical transactions are reported
· Detailed threshold setting, all user controlled, according to type of transaction
· OFAC compliance is managed as all transactions with Specially Designated Nationals, or Blocked Entities, or Non-Cooperative Countries and Territories are reported
· Automated promotion of accounts to high-risk category based upon their risk analysis, itself derived from the number and type of previously identified suspicious activities
· Tracking and monitoring facilities to ensure all exceptions are dealt with
· Easy interfacing to one or many trading, back office and payment systems; these can be totally different as STB normalises data automatically
· Instant audit trails directly back to all source system data from all reporting outputs
· Automated distribution of all reporting output to management desktops, as banks' require
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