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London, England - A unique software application, STB-Detector, is set to receive increased attention today as the six major UK banks - dubbed “the big six" - announce a new initiative to re-confirm the identity of every single UK banking customer. The announcement, made at a landmark Financial Services Authority Anti-Money Laundering conference in London yesterday, will see these major banking organisations gearing up for a re-verification process across their entire customer base. As the only anti-money laundering application available in the UK that is deliberately structured to manage customer documentation, as well as explore unusual account activity, STB-Detector is in a leading position to help all financial institutions with this huge retrospection process.

http://fsa.gov/uk/pubs/press/2002/075.html


“The initiative, which will ripple through the whole industry when the FSA commences consultation on a regulation regarding this retrospection process in the autumn, is long overdue”, says James Phillips, Business Development Director at STB Systems Ltd, the UK's leading specialist in AML software.


With some 160 financial institutions as clients of its regulatory and compliance applications, STB has considerable industry expertise. Phillips remarked "it is therefore no surprise that we have seen this coming. We often encounter financial institutions that acknowledge they are not aware if accounts on their books, many of which will have been opened before the introduction in 1994 of mandatory customer verification controls, may well belong to persons or corporations whose identity is not reliably known and requires re-documentation."


STB-Detector allows financial institutions to automate their customer due diligence controls. The product traps identity verification, recording what verifications the financial institution has performed and has on file, and stores these as documentation images. "Even before this important announcement from the FSA yesterday, we have been asked for and are able to provide search facilities for existing account holders versus bad-guy lists. To quote the FSA: ‘you just can't have those time bombs ticking away in your portfolio’, we are able to deal with this for our clients", added Phillips.


STB-Detector's Account Opening Due Diligence module - which can be applied both to existing customer re-documentation and retrospection projects - lends itself directly to industry-specific requirements: Phillips again commented on the FSA intention to consult on the introduction of a rule to move up the standards of customer identification across all sizes of financial institutions: "STB-Detector takes, as thresholds, the minimum verification standards stated in your risk-based policy, which will of course vary between investment banking, retail banking, equities trading and so on. These standards will also take into account the customer types involved and will automatically identify any customer account records without adequate verification. The beauty of this approach is that if the institution increases or changes its standards, and this will happen as regulatory pressure increases, then all accounts that breach new standards simply drop directly into exception reports. Customer documentation records may be sorted according to type of verification, expiry date, type of customer and so on, thus allowing any financial institution using this system to illustrate that they have bought-in to the approach the FSA is now clearly taking".

Phillips also reaffirmed the suitability of STB-Detector for clients seeking an all-round solution. "It is interesting to see that the "big 6" have also stated that re-confirming customer identity is only one part of a successful AML strategy. We quite agree. They also believe strongly that ongoing monitoring of transactions is equally as important as strong KYC controls. Again, the Account Behaviour functionality in STB-Detector is deliberately designed for this by monitoring automatically for unusual account activity. In one package, therefore, we provide account behaviour monitoring and the absolutely crucial controls of customer identity verification documentation which today's FSA announcement make essential functionality for all financial institutions. The FSA has stated that whilst this is not a compulsory procedure, an argument that the bad guy became a customer of the financial institution before 1994 will be somewhat hard to sustain."

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.
STB's core competence has led to new products for its customers including the development of an anti money-laundering system.

Press contacts:

Ray Jones / Peter Linton

Media Link

+44 118 984 3386

Ray@medialink.co.uk / Peter@medialink.co.uk

James Phillips

STB Systems Limited

+44 20 7403 2188

James.Phillips@stbsystems.com

http://www.stbsystems.com

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