FACT SHEET

SAS Anti-Money Laundering

Complete money laundering protection, full anti-money laundering compliance and the power of high-performance analytics
More stringent regulatory requirements have spurred many financial institutions to re-evaluate their current anti-money laundering (AML) systems. However, its the high-profile enforcement actions behind those requirements that have motivated a widespread reassessment of the effectiveness of existing AML programs and efforts to identify gaps in control and oversight. Only SAS offers a comprehensive AML solution that covers all key areas including suspicious activity monitoring, customer due diligence and watchlist filtering and all steps involved in AML processes. By combining context-specific intellectual property, SAS High-Performance Analytics and SAS Foundation technologies, SAS Anti-Money Laundering offers more complete protection and the ability to meet compliance demands with greater speed and accuracy than ever before. reduces staffing hours required for alert triage, and more accurately identifies actions and relationships that present the greatest risk. Because this approach objectively and consistently escalates alerts to investigators, your audit and regulatory risk is reduced. Enhance investigation speed and effectiveness. A configurable alert management hub provides a holistic view of work items, enabling more informed and efficient triage, and more timely risk mitigation. The intuitive interface provides quick access to all information relevant to an investigation in a way that is tailored to the role, rights and privileges of the user. Identify organized crime rings. Entity link analysis enables you to develop comprehensive customer risk profiles that incorporate all crosschannel account activity. By visualizing the cross-channel account activity of a network of account holders over any time period, you can identify and prosecute organized rings. Reduce AML compliance costs. Fewer false-positive alerts mean more efficient use of investigative resources. And reduced processing time frees computing resources for other uses, thereby reducing the total cost of ownership. Get up and running quickly. SAS Anti-Money Laundering includes a banking-specific data model optimized for financial crimes analytics and incorporates data management best practices from more than a hundred successful implementations, enabling a faster implementation time.

What does SAS Anti-Money Laundering do?

SAS Anti-Money Laundering takes a risk-based approach to monitoring transactions for illicit activity and helps banks and other financial institutions comply with anti-money laundering (AML) and counterterrorist financing (CTF) regulations. The solution uses high-performance analytics and multiple detection methods, enabling the institution to monitor more risks against very large volumes of data in less time. Once suspicious behavior is identified, a seamless workflow increases the effectiveness and efficiency of the investigative function.

Why is SAS Anti-Money Laundering important?

SAS Anti-Money Laundering dramatically reduces scenario time frames from hours to minutes by incorporating high-performance analytics with supercharged scenario tuning and what-if analysis into a unified technology platform that brings together the key capabilities of an end-to-end AML technology solution. As a result, investigators can spend their valuable time on the most critical cases.

Key Benefits
Monitor more transactions in less time. Reduce scenario time frames from hours to minutes using highperformance analytic capabilities, so investigators can more expediently identify and focus on the most critical cases. With SAS, you can process more than 2 billion transactions in a single night. And because array processing lets you monitor multiple risks during a single pass of the data, you can add numerous scenarios and risk factors with little to no impact on processing time. Improve the quality and accuracy of alerts. Alerts are scored using predictive alert analytics prior to being passed on to investigators. This significantly reduces false-positive alerts,

For whom is SAS Anti-Money Laundering designed?

SAS Anti-Money Laundering is designed for AML/CTF compliance departments within financial institutions.

Product Overview
SAS Anti-Money Laundering is an integrated component of the SAS Financial Crimes Suite, offering a common technology platform to ease the sharing of data and analytics, while reducing administrative costs. Data Management SAS Anti-Money Laundering includes complete data management capabilities that can be easily managed via an intuitive interface. A proven, bankingspecific data model maps transaction records to support transaction, account, customer and household dimensions. The data model includes the core schema for preparing all necessary data for nightly batch analysis, and a knowledge center data schema supports data retention and investigation. In addition to transaction data, the solution also supports nonmonetary event data, geographic data, risk lists, third-party data, associate data and a variety of customer information data. Suspicious Activity Monitoring and Reporting SAS Anti-Money Laundering automates the monitoring of customers and counterparties for potential money laundering or terrorist financing behavior, documents the decision process and if applicable automates the filing of reports to the appropriate authorities. A robust, flexible scenario engine automates transaction monitoring and behavior detection for SAR and CTR filing, and advanced analytics enable the creation of scenarios that use any of the following techniques: Rules. Peer grouping, clustering and segmentation. Behavioral profiling. Pattern recognition. Link analysis.

Predictive modeling (e.g., linear and logistic regression, decision trees and neural networks). All scenarios are parameterized, enabling you to configure thresholds to meet your institutions specific needs. In addition, each scenario may be further constrained by any attribute available in the data geography, account type, customer type, line-of-business, etc. so that it only applies to specific groups of customers or accounts. Flexible suppression facilities enable scenarios to be suppressed at the company, account or customer level either automatically or by investigators through the investigation interface. The system uses a powerful array processing method for alert generation that allows multiple scenarios to be deployed while making a single pass against the database. This means more risks can be monitored in a shorter period of time versus SQL-based systems that must perform numerous database scans. Nightly batch routines run against the core data schema, which comprises a combination of account, party, household, cash flow, associate, and CIP/KYC information. Selected scenarios are run against the core, and transactions that meet defined criteria become alerts. A powerful ranking engine attached to the scenario engine allows each alert to be risk-ranked based on a variety of factors (e.g., customer or account risk, scenario risk, number of past alerts, or the probability that the alert will result in a SAR filing). This approach provides an objective and consistent means of reducing low-quality alerts and escalating meaningful alerts to investigation, thus reducing audit and regulatory risks. Flexible ranking enables investigators to prioritize and focus their efforts on

those alerts that are of greatest concern. And by focusing on the highest scoring alerts, financial investigation units can reduce staff hours allocated to triage and devote more time to legitimate investigations. Customer Due Diligence/Know Your Customer Risk Scoring and Classification SAS Anti-Money Laundering automates the process of integrating a customers on-board risk score with actual transactional behavior, and supports enhanced customer due diligence by allowing high- and medium-risk customers to be monitored more stringently. The solution uses SAS models to derive Know Your Customer (KYC) risk scores based on a customers onboarding responses, and then stores the KYC scores for later use. Analysts can then reassess a customers risk classification periodically (e.g., annually or semiannually) or as needed. Compliance analysts can also create new classifiers whenever necessary using the solutions risk classification component without having to involve IT staff. In addition, the solution: Comes pre-populated with samples that mirror the examples in the FFIEC BSA/AML examination manual. Enables end users to deploy scenarios based on KYC risk segments. Watch-List Filtering and Support for Dow Jones Watchlist SAS Anti-Money Laundering imports sanctions and other watch lists to identify individuals, organizations or high-risk jurisdictions that represent heightened regulatory risk. The solution uses fuzzy matching logic to increase the accuracy of entity matches, and it also lets you create complex matching rules for a custom, risk-based approach to client screening.

This functionality is combined with the Dow Jones Watchlist service, which provides leading compliance risk information in a format designed specifically for automated screening and risk management. Investigation/Alert Management A Web-based investigation interface gives analysts easy access to the knowledge center database, which serves as the system of record for regulatory and auditing purposes. Easy-touse network visualization tools include a business intelligence dashboard that provides visual access to key performance indicators for a dynamic view of the most recent trends. Analysts can see a customers complete pattern of behavior so they can determine whats normal for the subject, review triggering transactions, and access CIP and other demographic information as needed. Having a clear description of why an alert was generated, along with supporting information, enables analysts to make decisions more quickly, consistently and efficiently. In addition, users can choose what information is displayed and can tailor its presentation to their individual roles, rights and privileges for greater efficiency and increased productivity. An administrative tab allows a super user to grant other users necessary rights and privileges, including the routing and suppression of alerts and the creation and filing of SARs. In addition to internally generated alerts, the system can display alerts generated by other transaction monitoring systems. And conversely, alerts generated by SAS Anti-Money Laundering can be exported to third-party case management systems if desired.

Key Features
Data Management Includes a banking-specific data model that: Maps transaction records to support transaction, account, customer and household dimensions. Includes the core schema for preparing data for nightly batch analysis. Includes a knowledge center data schema that supports data retention and investigation. Supports multiple data types (nonmonetary event data, geographic data, risk lists, third-party data, associate data and a variety of customer information data) in addition to transaction data. High-Performance Analytics and Visualization Provides stress testing capabilities for estimating the impacts of full enterprise coverage. Includes a scenario builder for testing, tuning and simulating scenarios in seconds instead of hours to improve scenario efficacy while adhering to model governance best practices. Provides rapid access to customer, account and transaction data. Suspicious Activity Monitoring and Reporting Applies scenarios and risk factors to transactions to detect potentially suspicious activity. Generates alerts for events that meet the rule parameters. Subjects alerts to additional workflow processes (e.g., suppression, risk scoring and routing). Includes an easy-to-use, point-and-click interface that enables: Easy creation and modification of scenarios and risk factors. Creation of customized routing rules for distributing the workload to compliance analysts. Customer Due Diligence/Know Your Customer Risk Scoring and Classification Automatically integrates on-board customer risk scores with actual transactional behavior. Enables reassessment of customer risk classifications either manually or upon periodic review. Documents information gathered during enhanced due diligence for a more accurate view of money laundering risk. Watch List Matching Imports sanctions and other watch lists to identify persons, organizations or high-risk jurisdictions that represent regulatory risk. Uses fuzzy matching logic to increase the accuracy of entity matches. Enables transaction, party or counterparty matching lists to be worked as alerts or cases. Combines functionality with the Dow Jones Watchlist service to provide leading compliance risk information in a format designed for automated screening and risk management. Investigation/Alert Management Includes a Web-based investigation interface that gives analysts easy access to the knowledge center database, which serves as the system of record for regulatory and auditing purposes. Enables super users to grant rights and privileges to other users via an administrative tab. Displays alerts generated by other transaction monitoring systems. Exports alerts generated by the system to third-party case management systems as needed. Compliance Analytics Follows a proven compliance analytics methodology that uses predictive models to score the likelihood that an alert will contribute to a productive investigation. Reduces the need to tune individual scenarios, since throughput is governed by analytic models. Deploys generalized models initially, and then re-scores models against your organizations data after the system is up and running. Integrated Case Management Includes a Web-based user interface that supports the management, investigation and reporting needs of analysts and investigators. Documents and retains all actions performed on alerts and cases for audit and regulatory review. Automatically identifies alerts that may be related to existing cases.

Compliance Analytics SAS and several leading financial institutions jointly developed and refined a compliance analytics methodology based on years of analyzing case management outcomes. SAS Anti-Money Laundering uses this methodology to significantly reduce the number of lowquality alerts in the work queue so that your scarce human resources can focus on conducting more productive, successful investigations and SAR filings. When alerts are generated, the system automatically filters them through a predictive modeling process that examines alert information together with profile signatures to predict with greater accuracy whether or not an alert will contribute to a productive investigation. To date, SAS customers have used postalert analysis to improve hit rates by 20 percent to 30 percent or even higher. The solutions flexibility enables you to deploy generalized models initially, with the intent of re-scoring against your organizations data after the system is up and running.

Key Features (continued)

Regulatory Report Generation Enables easier review, submission and management of multiple types of regulatory reports (SARs, STRs, CTRs) via a user-friendly, central regulatory reporting console. Enables easy editing or correcting of prior regulatory filings. Supports new e-filing processes, including error handling. Ensures consistent processes for SAR, STR and CTR filing. Supports multiple forms and languages to accommodate varying jurisdictional requirements. Captures response codes, error codes, etc., from government financial intelligence units. Supports new FinCEN forms. Centrally manages SAR access privileges to ensure confidentiality.

Risk assessment details help surface information to accurately assess the risk the customer poses to the institution.

SAS Anti-Money Laundering System Requirements

To learn more about SAS Anti-Money Laundering system requirements, download white papers, view screenshots and see other related material, please visit sas.com/money-laundering.
Alert details provide contextual information about the alert and tell you how and why the alert was generated.

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