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Banks and financial institutions are increasingly under scrutiny for financial crime from governing authorities and regulatory bodies. Money laundering is one of the most common financial crimes committed globally. The Basel Institute on governance, a leading organization on global governance, assesses countries and the world's average risk level of money laundering and gives them scores from 0 to 10. Their latest report estimated the average global money laundering risk score at 5.25 from 5.30 in 2021. This drop, however, could be attributed to a slight improvement in Anti Money Laundering (AML) and Combating the Financing of Terrorism (CFT) systems and regulations by governments and financial institutions. Another reason is that criminals are looking at innovative methods such as cryptocurrency to avoid detection altogether.
The emergence of newer automated AML IT systems could help combat this globally, helping institutions stay AML compliant. Financial institutions and banks have continued to invest in automated AML technology to monitor transactions and conduct background checks. However, it has not yielded the expected results- the Basel AML report also suggests that the effectiveness of AML/CFT measures across all countries fell further in 2022, from its already low level of 30% last year to 29%. The average score required for technical compliance stands at 66% as of 2022, and the global average has fallen well short of it. These existing AML systems are additionally complex and inflexible, further affecting compliance and customer experience and increasing costs. Manual risk assessments, transaction monitoring systems' efficacy, and data quality are the most significant issues plaguing existing AML systems in the banking and finance industry. Advanced analytics and reliance on advanced AI/ML for automated AML systems could be the next big step in combating money laundering in financial institutions.
Virtusa brings together tools, assets, and people in a unique combination that drives >30% efficiency and speed in delivering AML transformation.
Precise requirements measured via RCI
Precise requirements measured via RCI
SDLC automation led to accelerated delivery
SDLC automation led to accelerated delivery
Domain-driven approach
Domain-driven approach
Spark innovation
Spark innovation
Proven models for various use cases
Proven models for various use cases
AML experts
AML experts
Agile execution
Agile execution
Improved team engagement
Improved team engagement
We've worked with some of the world's largest financial institutions to implement cutting-edge, innovative solutions that have revolutionized how they do business.
The client had multiple transaction monitoring systems in different LoBs and regions, leading to higher maintenance and ops costs. Virtusa helped the bank consolidate multiple business unit hierarchies in one platform with varying rules by BU and multiple workflows for an alert type.
Business outcome:
The bank's existing rule set was too complex, and maintenance was expensive due to business changes. Virtusa aided the client in the qualitative and quantitative tuning of current coverage and gap analysis for AML risks using a leverage risk-based approach.
Business outcome:
We helped a tier 1 EU-based global bank with multiple systems in IB and Cap Markets with high operating costs and false positives of ~45000 by consolidating to an open-source AI-enabled platform and simplifying workflow to a single standard.
Business outcome:
A large Middle Eastern bank required technical and functional support for troubleshooting and needed to enhance their Actimize user experience for better productivity. Virtusa helped them with false positive alerts analysis and SAM solution/Model optimization, Minor development/enhancements/strategic fixes for SAM Batch Cycle, and troubleshooting for the SAM solution.
Business outcome: