ACI Proactive Risk Manager for Anti

ENSURES MAXIMUM
SECURITY & COMPLIANCE
PRODUCT FLYER
ACI PROACTIVE
RISK MANAGER™
FOR ANTI-MONEY
LAUNDERING
Compliance and anti-money laundering
(AML) headlines are making a comeback. And financial institutions are
paying the penalties associated with
the surge. The rapid development of
new payment channels, such as digital
and crypto-currencies has provided
new means of illicit gain for the criminal
enterprise. The worldwide annual value
of laundered funds is estimated to be
as high as US$2 trillion1.
•DENTIFY AND REDUCE MONEY
LAUNDERING RISK
•COMPLY QUICKLY AND COST EFFECTIVELY
•TRACK AND AUDIT ADMINISTRATIVE,
TRANSACTION AND INVESTIGATOR
ACTIVITY
According to a 2014 KPMG survey2,
“Despite annual expenditure that is
likely to exceed US$10bn in the next
couple of years, institutions continue
to fall afoul of regulatory expectations,
which seem to change more regularly
than in the past. Minimum compliance
with regulatory obligations is no longer
enough to stay out of trouble, when
you strive to meet a higher standard,
but fail.”
1 United Nations Office on Drugs and Money
2 KPMG Global Anti-Money Laundering Survey, 2014
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ACI PROACTIVE RISK MANAGER™
FOR ANTI-MONEY LAUNDERING
IS THE COMPREHENSIVE
TRANSACTION MONITORING
AND DETECTION SOLUTION
THAT HELPS INSTITUTIONS
IDENTIFY UNUSUAL OR HIGH-RISK
FINANCIAL ACTIVITY AND OFFERS
A FAST TRACK TO COMPLIANCE.
FEATURES AT A GLANCE
•EFFICIENT WORKFLOW MANAGEMENT CAPABILITIES
WITH EXPERT, RULES-BASED STRATEGIES VIA A
COMPREHENSIVE JAVA-BASED APPLICATION
•BEST PRACTICE RULES AVAILABLE AT
IMPLEMENTATION
•SUPPORT FOR ELECTRONIC TRANSMISSION OF
GOVERNMENT REPORTS
•HIGHLY CONFIGURABLE RULES AND QUEUE
MANAGEMENT
•LINK ANALYSIS FOR EFFECTIVE TREND AND
RELATIONSHIP EVALUATION
•OPTIONAL MODEL SCORING CAPABILITIES
TECHNOLOGY
•HIGHLY EFFECTIVE CUSTOM MODELS TO DETECT
RISKY CUSTOMER BEHAVIOR
•COMPLETE AUDIT TRACKING OF ADMINISTRATIVE,
TRANSACTION AND INVESTIGATOR ACTIVITY
•IMPLEMENTATION OPTIONS FOR QUICK AND COSTEFFECTIVE COMPLIANCE
• CASE MANAGEMENT FUNCTIONALITY
•PROVEN IMPLEMENTATION METHODOLOGY AND
ON-SITE SUPPORT
•24X7 CUSTOMER SERVICE AND LOCAL OFFICE
SUPPORT WORLDWIDE
•PEACE OF MIND BY MINIMIZING CUSTOMER IMPACT
AND PRESERVING BRAND INTEGRITY
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Criminals often target financial institutions known to
have weak or ineffective money laundering countermeasures. If illicit funds can be laundered easily
and without detection, then an institution could be
unknowingly drawn into active involvement with
criminals and become part of the criminal network.
Evidence of such complicity has damaging effects
on the attitudes of other financial intermediaries and
regulatory authorities, as well as on customers. A
reputation for integrity is one of the most valuable
assets a financial institution can possess. Understandably, financial institutions around the world are
proactively investing in effective countermeasures to
combat this growing menace.
 PAYMENTS RISK MANAGEMENT SOLUTION:
ACI PROACTIVE RISK MANAGER™
 Payments Risk Management is a financial crime
management solution designed to manage risk
across lines of business, payment channels and
customer accounts. It provides a critical layer of
prevention and detection controls designed to
minimize customer impact and maximize protection
against traditional and emerging fraud and money
laundering schemes.
A core component of  Payments Risk
Management, ACI Proactive Risk ManagerTM for
Anti-Money Laundering is the comprehensive
transaction monitoring and detection solution
that helps institutions identify unusual or highrisk financial activity and offers a fast track to
compliance. Proactive Risk Manager combines
the power of ACI Analytics, including a library of
expertly defined rules, with enhanced behavior
profiling for fast, accurate and flexible response to
the evolving and growing nature of financial crime.
Proactive Risk Manager provides comprehensive
workflow management capabilities for financial
crime management with expert rules-based
strategies at the core of this process. This
component builds on the expertise of the staff by
allowing the creation of real-time rules. Activity
matching a rule generates alerts, which are delivered
to reviewers via a user-friendly Java client interface.
A comprehensive set of tools enables supervisors
to direct workflow and manage reviewers. Proactive
Risk Manager captures and maintains statistics on
suspicious activity and reviewer performance to
provide valuable management information.
COMPLY QUICKLY AND COST EFFECTIVELY
Proactive Risk Manager’s comprehensive client/
server component can be implemented quickly
and cost effectively to comply with emerging
government regulations. This component offers
efficient workflow management capabilities with
rules-based strategies at the core. Proactive Risk
Manager allows the ongoing creation of additional
rules in real time, enabling employees to address
evolving reporting requirements, government
mandates and new money laundering schemes.
The use of sophisticated rules and strategies
provided by Proactive Risk Manager are effective
in detecting and alerting on many forms of
unusual or suspicious account activity to stop
money laundering activity in its tracks.
The solution’s comprehensive set of tools enables
investigators to further analyze a transaction in
relationship to the customer’s historical activity on
all related accounts. Proactive Risk Manager also
provides search and link analysis tools to investigate
similarities between apparently unrelated accounts
and payment channels to detect money being
moved across accounts.
•List monitoring and customer due diligence
Proactive Risk Manager offers a flexible Reference
Data Manager functionality, which enables
any data to be uploaded, including watch lists,
black (sanctions) lists, etc. Fuzzy-logic soundex
integrations with phonetic indexation can meet
the stringent requirements for detection against
names in nearly any language.
Management tools enable supervisors to efficiently
administrate, direct transaction and alert workflow,
and securely manage investigators for optimal performance and compliance requirement fulfillment.
Proactive Risk Manager maintains a comprehensive
audit of financial and user transactions and activities
to ensure adherence to AML policies and procedures.
Exception lists can be created for customers
domiciled in a high-risk country. In addition, the
enhanced profiling requirements of high-profile/
high-ranking government officials or politically
exposed persons (PEP) can be monitored by
Proactive Risk Manager.
DELIVERING PEACE OF MIND TO FINANCIAL
INSTITUTIONS
The solution provides financial institutions with
the choice, flexibility and control of their required
AML and compliance initiatives domestically and
internationally. Proactive Risk Manager is designed
to meet the needs of any financial institution with its
market-leading capabilities, which include
transaction monitoring, list monitoring, customer
due diligence, operational reporting and alert
management:
•Transaction monitoring
Proactive Risk Manager delivers enterprise
payments risk management by monitoring
suspicious activity, alerting on anomalies and
providing greater visibility into information
across customer accounts, channels and lines of
business. The solution’s flexible input architecture
allows customers to easily add additional pieces
of transaction data as new channel detection/
prevention controls are required.
Any and all activity by a customer can be
monitored. Transactions are typically defined in
two categories, monetary and non-monetary.
Monetary transactions can include any credits
and debits to an account in any payment
channel. Examples of monetary transactions are
ACH payments, wires, bill payments, deposits,
checks, ATM withdrawals, etc. Non-monetary
transactions include demographic updates such
as address changes, password changes, set-up
for payments, edits to payment batches, balance
inquiries, addition of new users, etc.
The solution provides the ability to monitor and
adjust an individual’s degree of risk respectful to
the local regulations. Rules can be authored to
exercise the exact amount of investigation and
review on new or existing customers who are
identified as requiring enhanced due diligence
and may exceed the risk-tolerance of the
institution. Watch lists and customer reference
data can be assessed by real-time or near-realtime rules, at account opening or in batch review.
Customers are able to configure their rules
to capture the required scenarios in order to
comply with regulators and internal and external
governance and audit requirements. In addition,
they can address internal misconduct to meet
any AML need of the financial institution.
•Alert management and reporting
Proactive Risk Manager offers an alert
management solution which provides customers
with the ability to define, configure and prioritize
the management of a broad range of alert types.
It is designed to help financial institutions manage
potential compliance events more efficiently;
track, control and prevent compliance related
incidents; and detect patterns and gather
intelligence to reduce losses from potential fraud
events and other suspicious activities, such as
money mule and account takeover situations.
The queue-driven alert manager assists in the
collection of relevant information and enforces
pre-defined processes to a conclusion. The alert
manager provides a central repository for tracking
consolidated transaction histories, reporting losses
and communicating to external parties.
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The solution provides pre-built reports, accessible
on demand, with a number of configurable parameters to retrieve the pertinent data. It is a highly
configurable system, with external application
extension points and an open database design
which customers can utilize in providing additional
reporting, for example, to third parties for AML
and compliance reporting requirements.
FURTHER IDENTIFY AND REDUCE MONEY
LAUNDERING AND FRAUD RISK
Money launderers have become more creative in
their methods with greater tools at their disposal.
Proactive Risk Manager’s enhanced profiling capabilities help identify complex schemes, even in new and
expanding payment channels. The solution provides
the ability to build and store profiles indicative of
typical customer and peer group behavior to better
identify and ignore genuine activity and identify and
alert on anomalous and high-risk behavior.
Proactive Risk Manager offers the advanced
analytics of a scoring engine with a customized
scoring model for use in enterprise transaction
monitoring scenarios. This component uses
advanced pattern recognition technology to give
users a highly effective way to detect fraud and
potential money laundering activity.
Proactive Risk Manager’s neural network compares
the characteristics of a customer’s financial activity
with the custom model and recorded patterns
of behavior for each account holder. The neural
network then assigns a score reflecting the degree
of risk for each transaction. This tool is a powerful
complement to an enterprise monitoring solution
where the use of a scoring model contributes to a
risk-based prioritization and alerting mechanism.
As financial institutions strive to increase
operational efficiency for overworked staff,
Proactive Risk Manager’s scoring engine minimizes
false positives, allowing staff to focus on the highest
risk activity. Investigators are also provided with
reasons for the score to improve analysis.
THE ACI ADVANTAGE
Proactive Risk Manager is used to address risk
management needs at customer sites worldwide,
in over 40 countries. With almost 40 years of
experience in EFT processing and transaction
security, ACI Worldwide is the recognized leader in
processing electronic payment transactions.
www.aciworldwide.com
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Americas +1 402 390 7600
Asia Pacific +65 6334 4843
Europe, Middle East, Africa +44 (0) 1923 816393
MEET BUSINESS GOALS
Proactive Risk Manager’s modular components
can be implemented separately or together.
Many customers choose to first implement the
rules-based strategies, as it can be done quickly
and cost effectively to comply with government
regulations. The custom neural network scoring
engine can be added later as a second phase of the
implementation.
ENTERPRISE RISK CAPABILITY
Enterprise risk is based on the reasoning that to
effectively prevent and detect fraud, a financial
institution must develop a framework for managing
risk across the organization. Proactive Risk Manager
provides an end-to-end, enterprise-wide financial
crime detection/prevention tool and risk management solution. Transactions from any channel may
be monitored within a retail or wholesale financial
institution. By capturing a broader view of customer
activity with Proactive Risk Manager, financial institutions gain a complete understanding of a particular
customer’s risk profile. This expanded view allows
institutions to better detect and prevent fraud by
monitoring transactions and events across the entire
range of customer activity.
REVOLUTIONIZES
PAYMENTS
ACI Worldwide, the Universal Payments company,
powers electronic payments and banking for
more than 5,000 financial institutions, retailers,
billers and processors around the world. ACI
software processes $13 trillion in payments and
securities transactions for more than 250 of the
leading global retailers, and 21 of the world’s 25
largest banks. Universal Payments —  — is ACI’s
strategy to deliver the industry’s broadest, most
unified end-to-end enterprise payment solutions.
Through our comprehensive suite of software
products and hosted services, we deliver solutions
for payments processing; card and merchant
management; online banking; mobile, branch and
voice banking; fraud detection; trade finance; and
electronic bill presentment and payment. To learn
more about ACI, please visit www.aciworldwide.
com. You can also find us on Twitter @ACI_
Worldwide.
© Copyright ACI Worldwide, Inc. 2014
ACI, ACI Payment Systems, the ACI logo, ACI Universal Payments, UP,
the UP logo and all ACI product names are trademarks or registered
trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United
States, other countries or both. Other parties’ trademarks referenced are
the property of their respective owners.
AFL5418 07-14

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