AML for Brokerage
Money laundering has been an area of risk exposure preoccupying financial institutions and government regulators since the 1970s. Now, several decades after federal regulators began examining banks for compliance with money laundering laws and regulations, the securities industry in many emerging market countries faces the same review. The complexity, size and volume of transactions make securities brokers an attractive target for money launderers. Indeed, a number of securities firms in the USA and EU have been cited by authorities for actual cases of money laundering. Because of such target potential for criminal elements, broker-dealers in many countries are now required to maintain an anti-money laundering program and report suspicious activity to their regulatory authority. They are being or have already been brought into the mainstream of AML requirements and expectations on the same basis as banks, and scrutiny and auditing of AML programs at securities firms all over the world will only increase in the future. The XM3 Platform for Brokerage
Haydrian’s XM3 AML solution utilizes powerful analytics integrated with internal and external operational systems to trigger alerts of unusual activity. The detection analytics review transactions with stocks, bonds, CD’s, cash and cash equivalent and EFT’s as well as customer information and actions. This innovative technology provides non-intrusive integration between primary data sources, avoiding the need for complex architectures that require unnecessary data replication. Examples of Brokerage Detection Models Accounts - Use by a customer of multiple accounts, possibly in multiple names, without apparent good business reason
- Use of multiple accounts to collect and funnel funds to a small number of foreign beneficiaries
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