Fiserv
FISV]

With evolving technology, Financial Institutions (FI) are facing a growing concern to manage financial crime risks regularly. Robotization, anonymization, and dispersal of information technology have opened paths for the criminals to gain access to sensitive data. Institutions often fail to forestall fraud and theft, with the ascent of online and portable dealings. Particularly, today’s insurance organizations are targeted by money launderers and terrorists as certain life insurance products can be used to launder the proceeds of crime.

As a global risk management services provider, Fiserv’s fraud and anti-money laundering (AML) solutions deliver superior risk protection against a wide array of financial crimes including fraud, money laundering, sanctions violations, and tax evasion. “There are three dimensions of risk, i.e., compliance obligations, reputational, and the moral imperative risks. Firms need to ensure the customers’ data are protected as well as their financial integrity,” says Andrew Davies, VP, Global Market Strategy, Financial Crime Risk Management, Fiserv [NASDAQ:FISV]. “Focusing on the triple risk dimensions, Fiserv looks at the data through the eyes of technology, analytics and predictive model, assisting CIOs to manage risk and address any solvency requirement.”

The company offers a complete end-to-end AML Coverage solution for Life Insurance, AML Risk Manager that delivers a quick and cost-effective way to manage and adapt to these new challenges. “It has been observed that, with advancements in technology, illegal money laundering activities are continuing to threaten insurers across the globe,” adds Davies. AML Risk Manager helps life insurance firms and intermediaries in establishing a comprehensive and cost-effective risk-based AML strategy geared for the industry that encompasses robust risk mitigation and regulatory reporting functionality. The solution provides innovative strategies to monitor transactions and events involving policies, parties, and producers, based on known insurance money laundering scenarios such as lump sum payments, early withdrawals, frequent address changes or high-risk payment methods.

Focusing on the triple risk dimensions, Fiserv looks at the data through the eyes of technology, analytics and predictive model, assisting CIOs to manage risk and address any solvency requirement

Built on industry leadership in AML, FATCA, and Watch List Filtering, AML Risk Manager delivers powerful new analytics and visualization tools for real-time detection, investigation, and interdiction. “When unusual activity is detected, alerts are delivered directly to the desktop and ranked by the intensity of the risk, so that the most suspicious alerts can be investigated first,” explains Davies.

Fiserv’s financial crime risk management solutions empower financial institutions, including insurance firms, to quickly respond to new financial crime attacks by offering integrated capabilities to model, detect and resolve risks in real-time all residing on a common platform. Additionally, the company’s solutions like Payment Fraud Manager, Check Fraud Manager and Customer Risk Manager provide innovative capabilities to support regulatory compliance and fraud prevention capabilities. They can be deployed individually, as best-in-class solutions, or in combination to derive a holistic risk and crime management. One of the early adopters of Fiserv’s risk management system, Manulife—a Canadian based insurance firm and financial services provider— implemented a standard set of risk mitigation analytics that helped them address specific requirements in various locations. Starting with focusing on particular jurisdictions the client moved on to manage the potential risk of life insurance products successfully.

Based on the advanced analytics implemented in their solutions, Fiserv is today manifesting the experience and expertise that they derived from previous engagements. “For the future, we want to continue investing in analytics and provide more visualization of relationships between financial advisors and customers to detect different types of financial crimes,” concludes Davies.