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Fraud Protection & ComplianceCompliance

PRODUCT OV

ERVIEW

Customer Manager

FICO

AML and KYC Compliance Solutions for Telecommunications

PRODUCT OV

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FICO anti–financial crime solutions enable CSPs to:

Protect your organization’s reputation by rapidly detecting money laundering

Flag politically exposed persons (PEPs) and sanctioned entities, before they become liabilities

Establish compliance with AML legislation —and prove it

Maximize efficiency and minimize cost of managing AML for your organization

The business models for communication service providers (CSPs) are evolving. CSPs increasingly are involved directly in financing expensive new mobile devices for customers. And CSPs have begun to offer platforms for financial services such as mobile money and microlending services in emerging markets. While these trends represent major opportunities for CSPs, they also bring with them new compliance requirements and regulatory hurdles.

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FICO AML and KYC Compliance Solutions for Telecommunications

Like financial service companies, CSPs now must prevent the use of their infrastructures to perpetrate financial crimes, especially money laundering. CSPs with financial service arms are required to implement anti–money laundering (AML) measures, and see to it that their networks are not being used by individuals or organizations who are known criminals or terrorists, or who are in political positions that expose them to the risk of being misused for laundering money in the context of corruption.

They must take know-your-customer (KYC) steps as well, seeing to it that customers listed on international registers of high-risk individuals are treated with enhanced due diligence—and that these relationships are identified in real time, at account origination, and over the lifecycle of the relationship. These duties can consume technical resources and administrative overhead costs. For small institutions, the financial burden can be overwhelming.

The FICO® TONBELLER™ Siron™ suite offers flexible and configurable modules and brings advanced analytics and artificial intelligence to AML compliance. This helps you to manage the end-to-end AML process and identify, prioritize, and manage cases appropriately. FICO’s new product, FICO® Falcon® X, consolidates all aspects of financial crime, including fraud, terrorism financing, and money laundering.

Using AI for effective money laundering detection with few false positivesInvestigation and management of money laundering is time-consuming

FICO® TONBELLER™ Siron™ AML Workflow

ComplianceFraud Protection & Compliance

and costly. It also can adversely affect the experience of the customer during the account application or onboarding process. Ensuring accuracy and avoiding false positives in the detection process is critically important. The FICO TONBELLER Siron suite is designed to establish a robust risk-based approach, using questionnaires and rule-based monitoring, bolstered by FICO’s industry-leading machine learning capabilities.

Once normal parameters are set, Siron AML spots suspicious cases by uncovering anomalies where account activity diverges from:

• Predefined thresholds

• Stated behavior from the KYC

questionnaire taken during onboarding

• Historic behavior

• Peer group behavior

These methods allow you to detect money laundering activity based on known money laundering scenarios where your risk management team can define parameters. In addition, our data-driven

machine learning algorithms and unique, patented artificial intelligence capabilities drive significant improvements in both detection and reduction of false positives. FICO’s AI examines all account and transaction activity to identify anomalies, including activity that deviates from norms but which has never been seen or associated with financial crime. The ML models work out what anomalous behavior looks like on the fly and constantly adapts to emerging risks. This improves sensitivity, reduces false positives, and saves the time and cost involved in unnecessary investigations.

A future-proof solution: configurations, not customizationsFor CSPs implementing an AML solution for the first time, a key concern is that the system will take a long time to implement, require expensive consultancy services, and be difficult to upgrade. FICO TONBELLER Siron AML avoids these obstacles and keeps total cost of ownership low by using a standardized

Operational Systems• Daily Data • External Data

CustomersAccounts (=Contracts)

Transactions (=Payments)

Analytics Profiles Statistics AML Advanced Analytics Model

Detection Scenarios

Analytics scoring

Alerts Investigation and Case Management• Monitoring • Analysis • Reporting (NCA)

Configuration• Set of Scenarios• Customer Groups• Analytics Setup

Scoring process

Audit• Scenarios• Analysis• Investigations• Reports• Actions• ...

ETL Process

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ComplianceFraud Protection & ComplianceFICO AML and KYC Compliance Solutions for Telecommunications

approach to implementation. Supported by the FICO® TONBELLER™ Siron™ RAS module, implementation follows predefined workflows to identify, categorize, and assess risks. The risk team will map the organization out to a product and customer structure and assign risk to every part of the business, enabling the solution to be rapidly deployed to meet the organization’s specific needs.

Siron solutions are highly configurable and can easily be adapted to the unique requirements of your organization without customization. Your own business users can modify the system as legislation or business needs develop. More than 1,200 customers have found their compliance staff can configure their system without help from FICO or their IT departments. Because modifications are stored as configuration metadata and do not require code changes, upgrades to new versions are simple and low-cost, making the solution future-proof.

Driving effective compliance through smart KYC measuresCSPs must balance their need to build business in the largely saturated, highly competitive markets they address against the need to understand and manage the risks presented by their changing customer bases. They must be able to assess who their customers are by carrying out appropriate KYC processes. Failure to put comprehensive KYC process in place can result in an adverse compliance judgment, reputational damage, and regulatory penalties.FICO® TONBELLER™ Siron™ KYC deploys a flexible questionnaire, which is used to

establish key information about customers and how they will use their account. Data is combined with analytics and workflow to assign risk levels and determine the correct approach for that customer; for example, whether you should follow simplified due diligence or enhanced due diligence.

Information from the questionnaire provides a baseline for expected account behavior. Then the system continuously monitors account activity. If behavior is identified that diverges from the expected, it is flagged and prioritized for investigation. If necessary, a new risk level and strategy can be assigned for the customer. This risk-based approach can be deployed across all the channels your customers use—across products, customers, and geographies as well—so that your approach is consistent and based on a single customer view.

This helps you to:

• Carry out comprehensive KYC processes and meet your compliance obligations.

• Assess the appropriate level of risk as per the mandated risk-based approach.

• Deal with customers consistently and fairly.

• Rapidly detect behavior that suggests money laundering activity and take

appropriate action.

Standard end-to-end software

Highly flexible configuration capabilities

Best-in-industry price-performance ratio

Largely automated surveillance

Full audit trail of all procedures

Multi-tenant, language, currency capability

Scalable from very small to very big

Seamless integration into any IT infrastructure

Easy updates of future versions

FICO, TONBELLER and Siron are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Other product and company names herein may be trademarks of their respective owners. © 2019 Fair Isaac Corporation. All rights reserved.

+1 888 342 6336 info@fico.com

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+55 11 5189 8267 LAC_info@fico.com

LATIN AMERICA & CARIBBEAN

+44 (0) 207 940 8718 emeainfo@fico.com

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ASIA PACIFIC

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FICO AML and KYC Compliance Solutions for Telecommunications

To learn more about the FICO® TONBELLER™

Siron™ Solution for Telecommunications,

contact FICO at info@fico.com

ComplianceFraud Protection & Compliance

Multiple deployment optionsDifferent organizations serve different geographies, operate under multiple regulatory regimes, and follow their own internal policies. So for a compliance solution, one size never fits all. Whether security, cost of ownership, or convenience is your biggest concern, there is a deployment option to support you:

Single tenant implementation—Where security policies require segregation of AML compliance to a single instance on a server.

Multi tenanted implementation—When you need to reduce total cost of ownership without compromising security. Segregation of instances is robust. Data is maintained separately for each instance, and completely independent detection scenarios can be developed for each instance. This is particularly advantageous if you want to use the same solution across complex operations with different business models and in different regulatory regimes.

Cloud—For those who want the ultimate in ease of implementation and ongoing solution management.

FICO TONBELLER compliance in the cloud delivers fast time-to-value, access anytime and anywhere, and delivery via a secure SaaS-based model.

Pricing is scaled to the size of the institution—number of contracts, number of accounts—and the scope of the application.