The safe way of correspondent banking

Stuttgart, February 26th, 2018 – When financial institutes act as correspondent banks for foreign transactions, they can get involved in money laundering and terrorism financing. Therefore, stricter due diligence in respect to their correspondent bank relations is effective and the legislator stipulates an appropriate transaction monitoring. SMARAGD CBM checks SWIFT messages for conspicuities, supports companies during the analysis, offers a flexible case processing and audit-proof documentation.

SMARAGD CBM checks all correspondent bank transactions as well as all participants in a transaction for conspicuities. A SWIFT message is assigned to any financial transaction that runs through the company. It is segmented with the help of SMARAGD CBM. The data of all participants in the transaction is enriched by key risk indicators and kept inside the system. A matured monitoring as well as a daily checking run by a flexible ruleset are the basis of the monitoring, in order to detect conspicuities in payments quickly.


Conspicuities are detected and analyzed

Financial institutes use SMARAGD CBM to check various things: change of behavior over different time ranges, concealment of payment origin (nesting), payments from high-risk countries, identification of money laundering keywords and abuse of SWIFT fields. The solution furthermore offers an integrated simulation system as well an effective case processing. That way companies cover all regulatory requirements. If SMARAGD CBM detects conspicuities and irregularities, the system reports them to the compliance department for further processing. The alerts can be weighted and prioritized by the specialist department individually. After a the exact analysis of the conspicuity hit all necessary measures are initiated. Extensive reports (processed data, alerts, edited cases) and an audit-proof documentation support this procedure.





Flexibly expandable ruleset

Thanks to its flexible ruleset SMARAGD CBM offers the opportunity to adapt checking rules as well as indicators at any time, in order to react quickly to new requirements. An integrated test and simulation system that uses live data guarantees the optimal configuration of the ruleset. Thanks to the high scalability of SMARAGD a performant processing of SWIFT messages is guaranteed. The system uses an interface adapter in order to monitor SWIFT FIN messages of the types MT103, MT202 and MT202COV. This happens during a daily checking run. In this run each party involved in the SWIFT message is monitored in respect to the complete payment chain. Furthermore, the system creates transaction profiles for every correspondent bank to assess changes in the amount of transactions.