Presentation on AML

1. Presentation on AML 12-Mar-14

2. Agenda • Definition of AML • Process of Money Laundering • Extent of Problem • Impact of Problem • Key Features of AML System • AML Framework • Value Proposition

4. Gross national Income Money Laundering Definition: The process whereby the origin of funds generated by illegal means is concealed Organized/Unorganized Crime • Drug trafficking • Corruption • Fraud • Terrorist Financing • $1000 – $1500 b / y

5. Financial Crime Definition: A violation of law committed by a person or group of persons in the course of an otherwise respected and legitimate occupation or business enterprise."  Coleman (1989) Fraud & Money Laundering Money Laundering Fraud

6. Smurfing Pizza trick Casino Etc. Small denominations €20 €50 No Paper Trail Money Laundering Process • Placement - Large volumes of small denominations • Layering - Moving funds to obscure paper trail • Integration - Reinvestment in legitimate business

7. Financial Impact • Money Laundering • $ Multimillion fines • Closing the Institution • Fraud • FBI > $ 300 by USA • 5 -12 % Insurance claims • Individual case > $ 10 b • List of More fines

8. Impact on Reputation

9. Pressure on Financial Institutions • FATF Recommendations • EU AML & Terrorist Financing Legislation • Bank Secrecy Act • Local AML Legislation (Notice 626) • USA Patriot Act • Sarbanes Oxley Act • Basel II

10. Addressing AML Requirements • Know Your Customer • Watch List Filtering • Risk Scoring • Transaction Monitoring • Link Analysis • Reports • Case Management

11. KASTLE - AML Framework KASTLE - AML CONSULTING Reports AML FRAME WORK ENTITYRESOLUTION CASE MANAGEMENT TRANSACTION MONITORING BUSINESS INTELLIGENCE Fraud Detection COMPLIANCE

12. Thank You