The Hunted Turn Hunter: Financial Institutions Adopt Enterprise Wide Approach to Financial Crime

    New Research From Norkom Technologies Reveals Paradigm Shift

    BOSTON, March 13 /CNW/ - Research by Norkom Technologies among
international financial services organizations reveals that the overwhelming
majority (73%) are moving towards enterprise wide management of financial
crime - from fraud to money laundering - across business units, product lines
and territories.
    Rosemary Turley, Director of Norkom Technologies, states: "Our
respondents recognize that an enterprise-wide approach will massively increase
their ability to detect crime and stop it in its tracks. The criminal rings
that perpetrate fraud or launder money do so across multiple channels,
regions, business units and product lines. Combined detection capabilities,
which recognize and flag connections between suspicious activity alerts across
the enterprise and provide information for coordinated investigations increase
the likelihood of catching the criminals.
    "As well as preventing financial losses caused by crime this will deliver
substantial operating cost reduction. Coordinated detection and investigation
improves efficiency as human and technical resource is maximized and
duplication of effort eradicated."
    However, the research also indicates significant barriers to
consolidation, including the proliferation of technology in the aftermath of
9/11, which has left institutions with multiple systems that duplicate effort
while inhibiting crime detection because of their inability to share
    Though 54% of institutions have invested in technologies to combat money
laundering and 47% to combat fraud, 42% of them say they currently have no way
to consolidate the information from these disparate systems. Many of those who
have achieved any degree of consolidation have done so only for money
laundering or fraud in isolation.
    According to Turley, technology proliferation has exacerbated an existing
problem caused by the industry's traditional business structures and rapid
growth: "It's ironic that the very activities that fuel growth - mergers,
acquisitions and the creation of new products and channels - also increase an
institution's exposure to crime by fostering silos of activity. When multiple
technologies operate in isolation, supporting crime fighting structures that
are business line, product or geography specific, it is easier for criminals
to attack and harder for institutions to stop them."
    Norkom has identified four steps companies must take to consolidate their
crime and compliance activities:

    1.  Deploy an overarching technology that consolidates suspicious
        activity alerts from all of the institution's detection systems.
        Apply additional analytics to uncover links and similarities between
        alerts to reveal the patterns and trends that are the hallmarks of
        organized crime.

    2.  Establish enterprise wide investigation and case management by
        consolidating the information needed for any investigation and
        delivering it directly to the investigator's desktop. Use consistent,
        automated workflows and information retrieval techniques to govern
        investigation and regulatory reporting procedures. Early adopters
        have seen a 98% improvement in the speed of first level investigation
        and a 200% improvement in detection accuracy.

    3.  Focus investigatory resource where it is most needed by using
        technology to segment and prioritize alerts according to complexity,
        level and types of risk then forwarding them directly to individual
        investigators with the most relevant experience.

    4.  Pursue constant evolution of detection scenarios to improve accuracy.
        The new generation of technologies include self learning capabilities
        that allow scenarios to be constantly refined, so that the number of
        false alerts created and investigations required decrease over time.

    75% of Norkom's research respondents agree that their investigatory
effectiveness would be improved if they could automatically identify links
between suspicious activity alerts. 76% agree that consolidating information
from their various detection systems to facilitate centralised investigations
would constitute best practice.
    "Technology vendors must recognise that institutions that have invested
heavily have little appetite for expensive technology replacement strategies,"
says Turley. "The new generation of technologies sit alongside existing
systems consolidating information to provide an enterprise wide view of
suspicious behavior, adding an additional layer of analytics to identify links
and patterns that are indicative of organized crime and providing structured
workflows to speed up investigatory and regulatory reporting processes."
    For your free copy of Norkom's research white paper 'Defining the Future:
The move towards enterprise-wide financial crime and compliance management'
call Rosemary Turley on +3531-873-9600 or email

    Norkom Technologies is a leading provider of financial crime and
compliance solutions to the global financial services industry. Its solutions
enable organizations to detect and combat financial crime, reducing their
operational losses, and addressing the industry's ever-changing compliance and
regulatory requirements. Its software suite is underpinned by a common
technology platform which can be configured to detect and investigate multiple
types of crimes. Norkom provides the infrastructure for an end-to-end
financial crime strategy while offering a range of solutions to address
immediate business issues such as anti-money laundering, watch list
management, card fraud, ID theft, internal fraud, market abuse or customer due
diligence. Norkom's approach reduces total cost of ownership and protects
clients from large-scale technology investments with every new type of
regulation or crime.
    Founded in 1998, Norkom has operations across North America, Europe and
Asia Pacific. Clients include: HSBC, Credit Agricole, Fortis, Rabobank,
Standard Chartered Bank, Erste Bank Group, Travelex, the New York Clearing
House, Bank of Montreal Financial Group, Allied Irish Bank, KBC Bank and
National Australia Bank Group.

For further information:

For further information: Rosemary Turley, Marketing Director, Norkom
Technologies, Tel: +353-86-829-1393,; or Hilary
Duffy, Marketing Manager, Norkom Technologies, Tel: +353-85-121-9414,

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