How 4Finance Meets AML Rules in 10 Countries
Blog: Enterprise Decision Management Blog
Meeting the separate AML compliance requirements of multiple countries can be a nightmare, not only because of differences in rules but differences in data sources. To meet this challenge, global fintech 4finance, based in the Baltics, turned to FICO, and their results earned them a FICO Decisions Award for regulatory compliance. Here’s what they did.
Meeting the EU ML Directives
Being under the regulation of the EU, 4finance had to comply with the 4th EU ML directive as well as the upcoming 5th EU ML directive. Speed was an issue because the risk of non-compliance was high and their reputation had to be secured.
Complying with the EU’s ML directive means:
- Identifying politically exposed persons (PEP)
- Preventing sanction persons and entities from doing business with 4finance
- Detecting loan applications and businesses related to money laundering
- Detecting any kind of unusual behavior
From a technical perspective, 4finance faced a distributed environment, with the need to support 10 countries with 20 data source systems. The compliance needed to be fulfilled at low impact to the business: A goal of less than 0.5% user interference had been defined. As a fintech, short application cycles had to be considered – 4finance has a goal to issue a loan within 15 minutes.
How FICO TONBELLER Helped
Due to the short timeline for compliance, 4finance decided to use an in-the-cloud implementation of the FICO TONBELLER Siron solution, leveraging Amazon Web Services (AWS).
We defined a project plan to support any phase of the project with senior staff members. These included:
- A project manager to align with 4Finance on the milestones, achievements and also the escalation process.
- A technical consultant to work on data interfaces during onboarding – how to integrate Siron®KYC into the existing application process. For transaction monitoring with Siron®KYC, we also defined a data mapping to 4finance’s 20 data systems.
- Experienced AML experts to understand 4Finance’ business, the local regulations and to define the individual mitigation strategy against any ML risks. That has been very important, because 4Financ’s business differs from a normal bank.
Working closely with 4finance, we overachieved against the deadlines and went live with a cloud-based implementation in less than four months.
Reacting to New Threats
Today 4finance is capable of using the solution without our support. If new money laundering risks show up, 4finance’s team can quickly refine detection scenarios and define new ones. And they can do all of this with just one FTE per country!
From my point of view, that’s a great success story. I am proud to be giving a presentation on that at our FICO World 2018 conference in April, together with Andis Grandāns, the AML Officer at 4finance. Join us!
Our Siron customers are also invited to listen to Andis during our annual Siron® User Group Conference in Berlin on March 15-16.