AML compliance leaders are plagued with investigator efficiency concerns, high false positives on sanctions alerts, and increasing levels of alerts they need to process each day. Clearing the fog of false positives that obscures suspicious activity is a massive challenge for compliance professionals. The view can be cleared with Match Exclusion.
Financial Institutions have to check transactions for signs of money laundering and other criminality to stay on the right side of the law. But false positive results often obscure criminal activity from view.
The challenge of identifying and blocking suspicious transactions is further complicated by business priorities: exceptional customer service, speedy, high volume transactions and business growth.
What’s the scale of the problem?
According to a joint 2017 study by Dow Jones and SWIFT, compliance departments report three closely interlinked challenges:
- High number of false positives: Over 70% of respondents are concerned with an increase of alerts from OFAC and the EU 50% Rule in the next 12 months
- Staff shortages, inadequate or outdated technology, and too many false positives represented the top three concerns for AML professionals
- Legacy systems: Nearly half of firms surveyed said their current technology is inadequate, insufficient or outdated,
How can BAE Systems help financial institutions address this problem?
Our NetReveal® Transaction Filtering solution with Match Exclusion technology reduces false positives of transaction alerts on average of 40% – 60%. It can help financial institutions achieve:
- Improved detection effectiveness through substantially lower false positives and increased true matches
- Increased investigator efficiency – less alerts need to be saved, alert tables and UI performance streamlined for faster decisions and disposition
- Transformational cost savings
Is this feature unique to BAE Systems?
Yes. Match Exclusion is a unique and differentiating feature of our Transaction Filtering technology. Match Exclusion is used to define exclusion rules for recurring false positives matches, drastically reducing the number of false positives investigated by business users. Those exclusion rules are defined based on existing false positive in customer production data.
How Match Exclusion helps:
Reducing false positive reports gives your investigators more time to examine truly suspicious transactions, unclouded by erroneous reports during the initiation and research stage of an investigation. This has a knock-on positive effect on staff productivity. Finally, shorter investigation times and higher detection rates reduce the institution’s level of risk from criminal predation and regulatory action.