Financial Institutions Must Accelerate Watch List Management Processes, Says Norkom Technologies



    Whitepaper Outlines Strategies to Improve Monitoring of Watch Lists of
    Suspects and Politically Exposed Persons (PEPs)

    BOSTON, July 31 /CNW/ - Recent research conducted by Norkom Technologies
reveals that, while the costs associated with watch list management continue
to rise, most financial services organizations are struggling to meet their
regulatory obligations and are ill-prepared to monitor suspected terrorist
activity in times of crisis.
    This was evidenced when, after a foiled terrorist attack in 2006, the UK
government asked institutions to search their global operations for 17 named
suspects. For most, the process took over three weeks. Yet, despite these
apparent failings, the cost and time associated with watch list management
continues to rise. 38% of organizations have seen time associated with watch
list management rise within the last 12 months. Over one-third say that it
accounts for more than 20% of investigatory time, representing an annual
business cost of US$1 million.
    According to Edward Doyle, Norkom's Sanction and PEP Compliance Manager
and author of the whitepaper, "If it takes organizations so long to conduct an
enterprise-wide name check at the behest of their government at a time of
national emergency, it seems safe to assume that they complete the task no
less speedily during the course of daily business".

    
    Other findings include:

    -   Fewer than half (45%) of institutions surveyed in The Endless Watch:
        Battle Strategies for the Counter Terrorist Financing Frontline are
        able to search for a person's name across all of their business
        lines, databases and geographical boundaries

    -   One third (31%) still rely on manual processes in such searches, even
        though some of the institutions have more than ten million active
        customer accounts and process more than a million transactions each
        day

    -   Encouragingly, however, 79% of institutions have recognized the
        seriousness of the problem and have centralized all anti-money-
        laundering responsibilities under a single reporting line

    -   27% have taken the more decisive step of centralizing their
        intelligence gathering by implementing a single technology capable of
        consolidating information from various detection systems.
    

    Doyle maintains that the approach to the problem must be a risk-based
one, in which the degree of scrutiny devoted to the ongoing monitoring of
accounts and transaction matches up to the degree of risk. Norkom's
whitepaper, 'The Endless Watch: Battle strategies for the counter terrorist
financing frontline', outlines a six-pronged approach for boosting the
effectiveness of anti-money laundering processes:

    
    1)  Centralize data
    2)  Manage variation
    3)  Transliterate and translate
    4)  Link multiple data points
    5)  Monitor transactions in real-time
    6)  Manage across geographies.
    

    Concludes Doyle, "Our whitepaper attempts to point a way forward by
weighing up the value of new approaches in the unglamorous but strategically
vital frontline in the war against terrorist financing."
    Copies of Norkom's whitepaper, 'The Endless Watch: Battle strategies for
the counter terrorist financing frontline' are available free-of-charge on
http://www.norkom.com.

    Notes to Editors

    About Norkom Technologies

    Established in 1998, Norkom Technologies (AIM: NORK.L, IEX: NORK.IE)
enables financial organisations to take intelligent action, control defences,
and evolve strategies against fraud, money laundering, and other types of
financial crime. By combining a unique investigative technology platform with
deep domain expertise, Norkom has established a solid track record of reducing
financial losses, protecting users' reputations, improving operational
efficiencies, and lowering the cost of information technology.
    Norkom serves clients in over 100 countries, including HSBC, Credit
Agricole, DnB NOR, Erste, Fortis, Rabobank, Standard Chartered Bank, Swedbank,
Washington Mutual.





For further information:

For further information: Fiona McLoughlin, Marketing Manager, Norkom
Technologies, +353-1-8739612, fiona.mcloughlin@norkom.com

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NORKOM TECHNOLOGIES

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