Financial Crime World

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Banks Rethink Transaction Scrutiny in the Age of Fintech

In an increasingly competitive landscape, financial institutions are recognizing the need to invest in advanced transaction scrutiny processes to stay ahead of the curve and maintain customer trust. A recent joint survey by SEEBURGER and Celent found that improved fraud mitigation is a key benefit expected from the transition to ISO 20022.

The Cost of Fraud Prevention

The cost of fraud prevention and anti-money laundering (AML) efforts cannot be overstated. Financial institutions are forced to allocate significant resources to detect and prevent criminal activity, but the consequences of failure can be devastating. Monetary losses, reputational damage, and severe penalties for non-compliance with regulatory requirements can have long-term repercussions.

The Solution: Secure Payments Modernization

To stay ahead of emerging threats, financial institutions must adopt a holistic approach to transaction scrutiny. This involves integrating data from various sources, including:

  • Customer profiles
  • Transactions
  • Business processes
  • External vendors

to identify risk factors such as fraudulent activity or money laundering.

Implementing ISO 20022 capabilities on an agile, secure, and scalable integration platform can enable banks to manage FRAML (fraud and AML) with more granular monitoring options. This standardization of payments data will introduce greater richness in payment information, allowing for improved transaction monitoring and fraud detection.

The Power of Data Ecosystems

By combining siloed data sets into a comprehensive ecosystem, financial institutions can unlock the full potential of their data. This integrated approach enables the use of cutting-edge technologies such as:

  • Machine learning
  • Robotic process automation
  • Artificial intelligence

to detect complex fraudulent payments in real-time.

SEEBURGER and SAS: Partners in Financial Crime Prevention

Together, SEEBURGER and SAS have developed a joint solution to address the complexities of modern-day payments integration. The SEEBURGER BIS Platform handles:

  • Corporate onboarding
  • Data exchange
  • Payment format validation

while SAS provides expertise in:

  • Fraud detection and prevention
  • AML
  • Security intelligence

Join Our Upcoming Webinar

Join our upcoming webinar to learn more about the latest trends in anti-fraud and financial crime compliance. Register now and stay ahead of the curve in transaction scrutiny.

References

¹ ACFE 2022 Report to the Nations ² UNODC Money Laundering Overview