The increasingly complex Customer Due Diligence regulations relating to Financial crime present a major challenge to banks. With multiple regulatory bodies introducing increasingly demanding regimes the costs of compliance have escalated to a point where they make a significant impact on operational costs. This is coupled with increasingly sever penalties for non-compliance with any part of the combined regulatory framework.Download Brochure
The increasingly complex Customer Due Diligence regulations relating to Financial crime present a major challenge to banks. With multiple regulatory bodies introducing increasingly demanding regimes the costs of compliance have escalated to a point where they make a significant impact on operational costs. This is coupled with increasingly sever penalties for non-compliance with any part of the combined regulatory framework.
FROPS provides a single, powerful, Customer-Due-Diligence hub assuring compliance with all the regulatory regimes relating to financial crime including Anti-Money Laundering (AML), Proceeds of Criminal Activity (POCA) regulations, identification of Politically Exposed People, fighting Tax Fraud and Sanctions.
A powerful feature of FROPS is that it monitors existing accounts to intercept any transitions to non-compliant behaviour as well as making very accurate assessments at account origination. The high accuracy with which it provides alerts of transitions of accounts from normal operations to suspicious behaviour ensures that erroneous intervention with legitimate clients activities is minimized.
An additional advantage of FROPS is that once it is set up for compliance it can also be used as an exceptionally powerful Fraud Prevention engine and Loans Book Profitability-Enhancement. Salviol’s FROPS has demonstrated the following result for fraud detection benchmarks in the financial sector:
In addition to using internal information to best effect FROPS’ exploits predictive analytics and behavioural information from sources such as the integrated FROPS-OSINT (Open Source Intelligence) which incorporates data from social networking sites (e.g. Twitter, Facebook, etc., blogs, Web, forums) industry and government data bases.
EWS allows banks to detect any developments indicating financial weaknesses and/or vulnerabilities in its client base. It automatically generates alerts of adverse events at an early stage and contributes significantly to the process of managing the relationship with such customers well.
A unique capability of FROPS is the ease with which Key Fraud Indicators (KFI’s) and Key Performance Indicators (KPI’s) can be combined into Key Fraud Vectors tuned to a bank’s specific business profile and risk appetite. This enables banks to perform checks on potential fraudulent behaviour as well as other suspicious behaviours with precision. It is very effective in both ensuring that account origination is well aligned with the bank’s strategy and isolating fraud that is only manifested at a later stage.
FROPS has strong investigation capabilities and a dynamic, global, key fraud indicators library. The Fraud department’s effectiveness is also enhanced by utilizing the industry’s leading behavioural analytics and machine learning technology.
Along with the technologies outlined above FROPS automatically generates Key Fraud Vectors after the detection of new fraud patterns. Hence, emerging fraud patterns are detected and blocked by FROPS’ machine learning capabilities rapidly.
FROPS has been designed for ease-of-use and incorporates guides on all aspects of how to use it well. This includes a facility for authorised business users to generate new KFIs without specialist IT knowledge. The effectiveness of fraud prevention is maximised by utilizing the industry’s leading behavioural analytics and machine learning technology. FROPS recognizes recurrence and statistically unusual behaviour and optimises the scheduling of investigations.
A market-leading aspect of FROPS is that regular updates of Key Fraud vectors are provided by Salviol. These updates include key indicators related to new types of fraud schemes from across the globe.
New types fraud schemes initially seen in one geographical location often travel to other regions rapidly. The Key Fraud Indicators that prevent frauds from a new scheme in one region are made available through the regular updates to Salviol’s Fraud catalogue to all its customers. As a result, protection against new types of fraud schemes can be often be implemented before the scheme begins to take hold in the markets in which the Bank operates.
An important feature of FROPS is the highly flexible way in which of risk scores and therefore the Key Fraud Indicators can be managed. This enables FROPS clients to tune the platform with precision to their match their own risk appetite. It also enables them to respond rapidly to changing market conditions and any adjustments in their own business such as the introduction of new products.
Alerts from FROPS can be integrated into the internal banking applications to stop or block specific actions/operations on accounts identified as suspicious automatically or through notifications to employees.
With Continuous Control Monitoring (CCM) the Bank actively monitor that all the processes relating to consolidating data from internal databases, publicly accessible databases and black lists, are operating.
FROPS uses statistical processing, predictive analytics and machine learning on an ongoing basis to identify and block new types of fraud schemes.
The FROPS platform incorporates powerful facilities for the visualization and interpretation of anomalies activities uncovered either automatically by the platform or manually by an investigator.
By aggregating all the data, internal and external (from both structured and unstructured sources) FROPS creates a single point of access to all the information relevant to fraud prevention and compliance. This information includes all the relevant data within the bank internal systems as well as outside data sources. It optimises data matching and data mining for the detection of suspicious patterns.
With its architecture, the FROPS system can be integrated rapidly into diverse environments. Given its accuracy, and the precision with which it can be tuned to each bank’s specific business model, FROPS has consistently delivered a Return on Investment (ROI) within 6-12 months of the date of implementation. Given this track record Salviol provides a guarantee that the investment in FROPS will be returned to the customer if the platform does not deliver a Return on Investment within 12 months.
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