BAE Systems Launches New Tool To Help Banks Streamline Anti-Money Laundering Processes

BAE Systems has launched a new algorithm engine within its flagship NetReveal Transaction Filtering solution, in order to boost the capabilities of its Anti-Money Laundering and Watch List Management systems. The new Match Exclusion engine uses a combination of algorithms and rules to distinguish between legitimate and suspicious transactions, reducing the number of false positive alerts between 40% and 60%. Match Exclusion is a complementary feature that is used to define exclusion rules for recurring false positives. Alerts based on known recurring false positive matches are still generated but marked as an exclusion. Depending on customer expectation, alerts can be removed, immediately closed or just hidden from the main investigator screens. The system will not only mark the alert, it will also log what rules were used to exclude the match. The log allows for maximum traceability – all data is retained and can be retrieved for audit – but means that only the most relevant alerts are presented to, and pursued by, investigators. The tool is intended to lower the amount of time banks’ analysts spend doing low-level tasks such as data collection, cleaning and aggregation. Reducing the amount of false alarms to be sorted by hand can dramatically improve the efficiency of investigators. “Money laundering is how criminals disguise money generated from human trafficking, fraud and slavery into appearing as legitimate funds – damaging society and defrauding citizens from their hard earned money. Helping financial institutions detect and prevent more of this activity is a moral imperative,” said BAE Chief Product Officer, Neal Watkins. “But all too often banks and other institutions are hampered by the need to sift through false alerts, costing investigators crucial minutes, hours and days. Cutting down on the number of false alerts frees up investigators to look into crimes. The net result is that banks and other financial institutions can then be more effective at stopping money being laundered through their systems and breaking down the criminal supply chain.”