Solution Focused on Preventing Money Laundering 
and Financial Fraud

SENTINEL COMPLIANCE & RISK is a specialized solution that prevents money laundering and fraud in financial institutions, thus avoiding any legal sanctions, financial losses, or loss of prestige. It uses profiles, business rules, expert transaction scoring, neuron networks, and decision trees; it checks lists of people or companies, analyzes customer behavior and makes it possible to record all the steps involved in deciding whether or not an activity is unusual.

Money laundering and fraud prevention policies’ increased efficiency and effectiveness have been strengthened even more with SENTINEL COMPLIANCE AND RISK. This solution’s benefits regarding checks and balances and unusual activity detection and management are based on a preventive, immediate response approach that includes the knowhow of a specialized firm and the best international practices.

The immediate results that this high technology solution provides has reached the point where it can detect fraud minutes after the system is up and running, activating the prevention and investigation mechanisms immediately. The solutions provided by SmartSoft have enabled our clients to see decreases in losses of up to 85% by adding mechanisms that minimize sanction and fraud risks with legitimate activities.

Architecture

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Sentinel Compliance & Risk Functionalities

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Preventive Focus: The leading-edge SENTINEL COMPLIANCE & RISK technology with engines monitors and evaluates all of the operations in REAL TIME OR ONLINE, which means real, effective fraud and money laundering prevention.

Monitoring Multiple Channels: SENTINEL COMPLIANCE & RISK makes it possible to monitor transactions through different channels that may include the following: electronic branch and online banking, teller window, auxiliary tellers, telephone branch, and mobile banking.

Behavior Profile Generation: The system generates profiles that define customer behavior based on their stated activity or the past activity they have had at the financial institution.

Incorporating Lists Of Parties Suspected Of Money Laundering and Terrorist Activities: SENTINEL COMPLIANCE & RISK incorporates the contents of private lists that the financial institution has (black and/or white) into its risk evaluation model, in addition to lists available worldwide, such as OFAC, non-collaborating countries, PEPs and black lists; the subjects are clearly identified and this information is automatically applied.

Rating Customers by Risk Profile: SENTINEL COMPLIANCE & RISK rates risk from two approaches: by customer and by customer transactions. The first rates the customer by inherent risk, based on these features: industry, economic activity, monetary volumes handled, etc.; and for the second, the system sets a risk score for each transaction made in the system.

Warning Generation: The system creates warnings about unusual activities with customized criteria for the financial institution that may include specific information about the transaction, product, customer, line of business, market segment, etc.
Regulatory Reports: SENTINEL COMPLIANCE & RISK generates regulatory reports on the forms requested by each country’s regulatory entity.

Sentinel Compliance & Risk Benefits

Benefit Description

Versatility in Investigating Unusual Activity: The system conducts investigations about unusual activities from two possible perspectives. The first perspective, CENTRALIZED, is where the compliance officer team will follow up on the warnings issued by the system. The second perspective enables DECENTRALIZED investigation where the account executives, branch managers, and other officials at the institution may handle the process with appropriate oversight by the Compliance Officer, including a workflow based on the financial entity’s structure.

Integration of Due Diligence Policies: With SENTINEL COMPLIANCE & RISK, our clients can integrate their due diligence policies into money laundering prevention management. The system includes information from the "Know Your Customer," "Know Your Employee" and "Know Your Provider" procedures in its structure. Consolidating this information in the system as a tool for detecting money laundering makes it possible for clients to improve their checks and balances and obtain better results at the compliance level.

In Line with the Best International Practices and Norms: The SENTINEL COMPLIANCE & RISK model includes the best international practices related to risk compliance and fraud. They include the recommendations by Wolfsberg and GAFIC, the Basel II guidelines, OFAC lists, and articles in the US Patriot Act.

Easy to Operate: A very user-friendly graphic interface with an assistant to help create rules that enable complex analysis patterns to be easily modeled after with greater flexibility and without the need for any additional programming. In addition, the implementation process offers multi-level training targeting functional and technical users at different management levels.

Strategic Business Unit: SENTINEL COMPLIANCE & RISK facilitates financial conglomerate operations, allowing them to monitor each of their companies (multiple banking, foreign exchange facilities, stock brokerages, pension fund managers, etc.) using the same platform. In addition, it supports regulatory entity handling by consolidating the different institutions in a country within the same analytical framework.

Flexibility: SENTINEL COMPLIANCE & RISK can add new regulations, rules models, profiles or controls for users, without having to modify the system. Periodically automating international organizations’ lists leads to substantial improvement in preventive control of money laundering and fraud policies at an international level.

Regulatory Compliance: It provides the financial institution with the tools to comply with local regulation standards; it can also be adapted to changes in the regulatory framework, thus avoiding sanctions arising from a loss of funds, strategy, or reputation.
Integral Solution: Covers the full process from analyzing unusual activities to the end of the investigation process, including prevention strategy design, customer behavior analysis, warning generation, interaction with the institution's systems (blocking) and communication with customers via SMS messages and email.

Global AML Controls: System automation using international organizations’ lists leads to a substantial improvement in preventive control of money laundering policies at an international level.

High Processing Volume: SENTINEL COMPLIANCE & RISK can stand up to high transaction processing volumes since the approach is real time and online. This includes peaks based on the time or calendar.

Depth of the Analytical Model: Because of the ongoing increase in money laundering and fraud, our solution incorporates very sophisticated analysis models that evade the schemes created by organized crime to commit their crimes.

Multiple Focuses: The system is designed for multiple approaches or ways of using the different business areas, from perspectives including internal checks and balances analysis and commercial analysis (creating new business), etc.

Specifics about Customer Behavior and Seasonal Profiles: The system generates profiles defining customer behavior; it has the option to set up SEASONAL PROFILES that are adapted to the customer's real activity during the year, considering such factors as special seasons for business, planting season for agriculture, etc.

Tropicalization and Customization: The system functions using each institution's own reality, its country, and business sector, including differentiated monitoring strategies.