Financial institutions, casinos, sports-wagering services, and other organizations are on the front lines in combating the financing of terror and money laundering, and their regulatory hurdles are high. A key challenge for managing regulatory compliance is balancing risk management with operational efficiency and effectiveness through innovation. K2 Intelligence Financial Integrity Network’s (K2-FIN) Third-Party Managed Services solution is an outsourced technology and manpower service that enables these organizations to meet regulatory requirements and control costs.
Transaction monitoring systems and alert analysis represent the greatest area of Anti-Money Laundering (AML) spending, yet regulatory requirements concerning AML, sanctions, and due diligence continue to outpace system improvements. Increasingly, only the biggest banks are able to maintain the pace of needed improvements. Small and midsize financial institutions and other kinds of organizations often face challenges related to the need for continual system upgrades and experienced personnel in place to identify suspicious activity and investigate it.
Our Third-Party Managed Services solution helps manage the regulatory obligations for Know Your Customer (KYC) at the time of onboarding, transactions monitoring and investigation, sanctions screening, reporting obligations and program governance. Located in the United States and staffed with seasoned professionals, we provide institutions with both short-term and long-term outsourced solutions custom-tailored for the institution.
K2-FIN’s Third-Party Managed Services solution satisfies the most pressing needs of banks, money service businesses, regulated FinTech startups, cryptocurrency exchanges, casinos, sports-wagering services, and others in achieving comprehensive Bank Secrecy Act (BSA) and AML compliance:
- Coping with a shortage of experienced employees
- Improving compliance processes
- Developing and maintaining a robust technology infrastructure
- Tackling global compliance demands
These organizations benefit by:
- Gaining efficiency and quality of work as a result of structured, maximized processes
- Accessing leading experts in AML, anti-fraud and sanctions regulations
- Attaining the flexibility to scale resources up or down as needed
- Reducing the burden on their internal resources and support infrastructure
- Lowering costs
Our U.S.-based teams assist institutions in identifying inherent AML risks and potential sanctions issues and in designing and implementing enterprise-wide risk assessments. Our proven track record enables you to meet heightened regulatory scrutiny. We are able to review your customer base, perform periodic reviews updating all your due diligence, and help you know who your customers are and identify beneficial ownership. Our teams have the expertise and the ability to get information from all around the globe, thus managing your risk.
Leverage flexibility and scalability
Our third-party Managed Services solution lets you leverage its capabilities in a way best suited to you: for institutions that have made significant technology investments in monitoring systems, we can leverage your existing technology, conduct model validation, and generate periodic alerts that are then reviewed by our seasoned and experienced AML professionals. For those institutions requiring a more comprehensive approach, we can leverage our own best-in-class technology and our experienced professionals to act in the capacity of the bank’s FIU—and we will see to it that the rules are appropriate and are being applied correctly. And because our FIU is a scalable solution, we are able to offer interim and peak-volume assistance.
This solution also integrates regulatory surveillance functions with practical business intelligence tools by taking a risk-based approach and using high-performance algorithms and multiple detection methods. K2-FIN is able to monitor more risks against greater volumes of transaction data in shorter time spans. The result? We are able to monitor more transactions, improve the accuracy of alerts, investigate more speedily and effectively, and control your AML compliance costs.