AML systems rely on a sophisticated set of rules to determine if a transaction is possibly suspicious. Central to the design of detection rules is the concept of risk based transaction monitoring. For financial institutions, the risk associated with a geographic area is a primary attribute that should be considered by AML rules.
Address information is often structured in a way that makes it difficult to determine the country of a party within banking transactions. This is particularly true for SWIFT and payment messages. We have found that upwards of 80% of geographic region information is improperly handled by AML Systems.
Consequently, many AML systems do not properly identify the country for all of the parties in a transaction. When a country is identified, it is not always represented in the same way as it is within detection rules. The country may be abbreviated, misspelled or in foreign language. The result is that many rules that are based on geography will fail to produce a correct result. This places the financial institution under greater regulatory risk.
Telavance has developed Advantage Country Extract™ as a cost effective solution to the challenge of properly identifying and mapping the country for transaction parties. Advantage Country Extract is based on a comprehensive worldwide database of cities, states, zip codes and countries. This database is combined with intelligent rules that understand the grammar of an address. The rules engine will transform all countries into a common form addressing misspelling, foreign language, and abbreviations. It will then properly extract the country of the party, standardize it, and update the interface with the proper information.
Advantage Country Extract’s engine dynamically learns as rules are updated by Telavance and its clients. This assures that results continuously improve as it is used. Supporting the rules engine is a comprehensive reporting package that
Advantage Country Extract will provide a simple method to mitigate the risk of improper geographic information.