Anti Money Laundering

Anti Money Laundering
l Anit-Money Laundering Profile

l Anti-Money Laundering Screen
Anti Money Laundering- Release R13.00 -Page 2 of 9 - (c) Temenos Systems 2013
Anti-Money Laundering Profile
Ov e r v ie w
Anti-money laundering (AML) is a term mainly used in the financial and legal industries to describe the legal controls that require financial insti-
tutions and other regulated entities to prevent, detect and report money laundering activities. Money laundering refers to the process of con-
cealing the source of legally, illegally, and grey area obtained monies. The amount of money laundered each year is in the billions (US dollars)
and poses a significant policy concern for governments. As a result, governments and international bodies have undertaken efforts to deter, pre-
vent and apprehend money launderers. Financial institutions have likewise undertaken efforts to prevent and detect transactions involving dirty
money, both as a result of government requirements and to avoid the risk of reputation involved.
Temenos has a range of AML products which can be used by Financial institutions to detect and prevent money laundering. There are products
which perform online as well as offline screening of Customer transactions.
AML Profile (Product name - VP) is one such product available for offline profiling. What AML profile does is to provide a framework for defin-
ing the applications whose transactions and other information that are to be collected offline and a report generated using the Data Warehouse
(DW) module with all the details. This report can be analysed by any AML software and suspicious Customers or Accounts could result in
them getting added to the watchlist to be monitored by an online AML screening software.
The main objective is to provide an extract of CUSTOMER, ACCOUNT and transaction files (Currently FUNDS.TRANSFER only) in a CSV for-
mat which can be picked up by any AML system for further processing
C onfigur a tion
The following Parameter files are required for configuration before entries can be made:
ACCOUNT.PARAMETER
A default filter subroutine AML.ENT.FILTER.RTN to select STMT.ENTRY for capturing transaction details has been introduced in
ACCOUNT.PARAMETER > ACCOUNTING.SUBR field.
AML.ENT.FILTER.RTN is a hook routine to be attached in ACCOUNT.PARAMETER. This will update the concat file AML.TXN.ENTRY. The
ID of the file will be <APPLICATION>-<TXN.ID>.
The record contains the dump of the following:
First line will have application record, Second line will have debit side STMT.ENTRY and Third line will have credit side STMT.ENTRY.
An extract on how F.AML.TXN.ENTRY will look like would be as below :
Note: AML.TXN.ENTRY is a file maintained in the backend.
AML.TXN.PARAMETER
This is the AML parameter file which is used to specify the application that will be picked up for capturing of data.
The parameter need not be set for CUSTOMER and ACCOUNT application as these are included by default.
AML.EXTRACT.MAPPING
For each application specified in the AML.TXN.PARAMETER this table will specify the fields to be mapped to AML transaction profiling (.csv)
file. Individual setup is needed for both legs of the transaction,i.e. Debit and Credit sides.
Note: DEBIT/CREDIT should need not be suffixed for STMT.ENTRY application.
DEAL.PROCESSING
The setup and workflow for AML profile is defined in the chart below:
The routine AML.PROCESS.DATA reads the concat file F.AML.TXN.ENTRY and builds the csv file.
Please refer to the "How to" guides for further setup and processing related to DW module and extract of CSV file.
(c) Temenos Systems 2013
Anti-Money Laundering Screen
Ov e r v ie w
Money laundering refers to the process of concealing the source of legally and illegally obtained monies. There is a growing concern all around
the globe that such monies are used for a host of illegal activities and terrorist financing. Governments are implementing Anti Money Laun-
dering measures to control and prevent such sources.
Temenos has a range of AML products which can be used by Financial institutions to detect and prevent money laundering. There are products
which perform online as well as offline screening of Customer transactions.
AML Screen - VL - is one such product available for online screening of Customer operations. AML Screen integrates with Integration frame-
work and uses DISPO processing to authorise or reject a transaction based on a miss or hit response from AML Screen. It essentially main-
tains a black list against which the comparison is done and a hit or miss response is generated.
The user is also provided with a review facility for a compliance officer to manually check.
C onfigur a tion
The actual configuration for AML Screen lies with configuring via Integration Studio (Integration Framework).
IF (Integration Framework) is asynchronous and is a simple, efficient tool to transmit messages to other systems. IF is designed to handle high
volumes and comes with 2 components:
Design time ‘Integration Studio’ where the versions, applications and component operations for which events need to be triggered can be men-
tioned. The message content that is sent to other system can also be configured here.
Run time component which captures the exit points (versions/application + input/auth stage) and depending on the pre-defined flow schema,
prepares messages and transmits (through ‘Integration Service’) to other system
The AML engine will check if a message is on a blacklist and returns hit/miss. A full review facility is provided in AML screen for a compliance
officer to manually check.
In Integration Studio you define an event and choose the exit point. The exit point can be the version of an application. For example:
FUNDS.TRANSFER,. An override is defined in the IF event and DISPO processing is triggered based on it. Upon authorisation of the trans-
action input using the version linked in the IF event, the status of the transaction goes to INAO.
Upon receipt of a miss or hit response from the AML Engine the underlying transaction gets authorised or deleted.
The workflow for AML Screen is as per diagram shown below:
Please refer to the "How to" guide for further setup information.
(c) Temenos Systems 2013

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What is anti-money laundering?

What is the purpose of AML profiling?

Anti Money Laundering

l Anit-Money Laundering Profile

The record contains the dump of the following:

An extract on how F.AML.TXN.ENTRY will look like would be as below :

(c) Temenos Systems 2013

The workflow for AML Screen is as per diagram shown below:

(c) Temenos Systems 2013

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