Standard Chartered rolls out integrated fraud detection and compliance software

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Standard Chartered rolls out integrated fraud detection and compliance software

Christian Annesley

Standard Chartered Bank is rolling out integrated fraud detection and compliance software to standardise risk management across its global operations. The move will also enable savings through economies of scale.

The bank is adopting a range of anti-fraud modules from Norkom Technologies covering operational risk management, anti-money laundering, fraud detection and prevention, and watch list management.

Implementation has already begun in the US and UK, where the software is expected to be fully deployed in early 2006. A global roll-out across all 50 countries in which the bank operates is set to be completed during 2007.

Until now, the bank has not had a dedicated global anti-fraud system, but has developed a variety of local systems internally to track potentially fraudulent activity. The Norkom package should enable the bank to adopt consistent international processes which can then be fine-tuned to meet the specific regulatory environments of each country.

The software will also help to join up anti-fraud processes with regulatory compliance procedures at the bank.

Michael McVicker, head of compliance for the bank's Americas operations, said that increasingly regulators want to see anti-money laundering systems from which the output is either a decision to seize funds or a report on suspicious activity that can be passed to regulators.

Norkom's technology monitors banking transactions for suspicious activity both in real time and batch mode. Real-time sanctions filtering is more limited than batch analysis but reflects the need to stop fraudulent transaction activity as soon as possible. Both real-time and batch analysis generate prioritised alerts for the bank's analyst team for further investigation.

The software also monitors transactions against various watch lists established by international banking and regulatory authorities to identify transactions to or from individuals, organisations or countries that are considered high-risk.

The system integrates with the Swift messaging and payment processing system used by the banking community. It can also analyse data from all of Standard Chartered's customer relationship management, transaction and payments systems, many of which run on open source software.

Norkom's modules are database-independent, taking feeds from the bank's various systems into a datawarehouse for analysis. McVicker said integration was expected to be relatively straightforward, since it has become much easier to export data to standard interfaces.


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