Fortent, a provider of information and technology to the risk and compliance market, announced today that it has selected IBM (NYSE:IBM) as its managed hosting partner in preparation for the launch of a hosted version of its market-leading anti-money laundering (AML) solution.
Fortent's new AML product, available this spring, will be the first in a series of compliance applications, including KYC and fraud detection, that the company will offer on a hosted basis later this year. IBM brings extensive experience in managing large business applications and delivering superior security, performance, and technology to customers.
"The Fortent-IBM hosted solution will bring clients the quality and reliability they need to manage their AML processes," says Sandy Jaffee, Fortent's CEO. "Using world-class data security and well-tested expertise in the hosting environment and the financial sector, this system will set a new standard in AML delivery for financial institutions."
Meeting Bank Secrecy Act and OFAC regulations have become the #1 compliance priority for financial institutions, according to a recent survey by the American Bankers Association. Institutions in the banking, brokerage, and insurance sectors are required by regulators to implement effective AML systems to avoid stiff fines and penalties imposed by enforcement agencies. Compliance budgets for organizations of all sizes have swelled since 2001, leading the financial sector to seek cost savings in AML processes while reducing regulatory risk.
"Financial institutions are looking for new ways to mitigate risk and automate compliance requirements while navigating a fluid regulatory environment," said Todd Gordon, vice president, portfolio management, IBM Global Technology Services. "The combination of IBM's world-class hosting services and Fortent's mission-critical AML solution address these pain points and simplifies AML compliance for our financial services clients."
Fortent's AML solution will be hosted at IBM's strategic data center in Columbus, Ohio. Under the terms of the contract, IBM will provide 24x7 monitoring, operational support for database administration, server administration, business continuity planning and services, data center and information security monitoring, and advisory services.