Rapid growth in the global economy, combined with improvements in regulators’ ability to identify conventional money laundering techniques; like physical cash smuggling and bank transfers, has made international trade an increasingly attractive avenue to move illicit funds through financial transactions associated with the trade in goods and services.
Trade-based money laundering (TBML) is a complex phenomenon. Its constituent elements cut across not only sectoral boundaries but also national borders, and the dynamic environment of international trade allows it to take multiple forms.
State Bank of India (SBI), India’s largest commercial bank and a Fortune 500 company, worked with Accuity to improve its anti-trade-based money laundering (ATBML) processes. The project is at the forefront of best practice, going beyond the conventional screening checklist to ensure all elements of the trade transaction are screened – including dual-use goods information, vessels, ports and shipping data. SBI has enhanced its capability to prevent trade-based money laundering while minimizing false positives and keeping the good trades flowing.
The project was recognised by The Asian Banker in its recent awards as the best Anti-Money Laundering Technology Implementation of the Year 2016.
Five trade differentiators unique to Accuity include:
- Unique dual-use goods screening database
- Specific fields to screen against sanctions e.g. ports, vessels and shipping data
- Ability to support high volume transactions from multiple countries from a single instance
- Case management module ensured the match alerts are restricted to specific regions
- Full and efficient audit trail to demonstrate adherence to procedures and due diligence
Speaking at the occasion Mobasher Zein Kazmi, Head of Research, Asian Banker, said: “SBI and Accuity were the clear winners in the AML category. At a time of increasing regulatory focus on trade-based money laundering, SBI is at the forefront of forging industry-best practice with its breadth of screening capability and localised, efficient decision-making.”
Speaking at the occasion Hugh Jones, CEO, Accuity, commented: “Accuity is honoured to win the Asian Banker Award with SBI. Winning this award means a great deal to us – as it recognises our innovation in dual-use goods screening and our commitment to continuing innovation and partnership with our clients.”
At a time of evolving regulation to prevent TBML, please contact us to find out how Accuity’s award winning Trade Compliance solutions can help you stay ahead of regulations.
To read more about The Asian Banker Anti-Money Laundering Technology Implementation of the Year 2016 award win, see Accuity’s press release here.