Pegasystems ships financial crime case management system

This solution is designed to enhance the ability of organizations to manage alerts across lines of business and disparate systems in order to automatically identify critical breaches and reduce the processing of false positives. This new capability meets the increasing regulatory scrutiny that today's banks and financial institutions are facing, while also addressing concerns brought on by penalties for non-compliance.

Pegasystems' new SmartTriage capability enables institutions to automatically identify, manage and reduce the increasing number of false positives generated through disparate suspicious activity monitoring, anti-money laundering, sanctions filtering and fraud detection systems simultaneously. This ensures full internal control, auditable processes, and regulatory compliance via real-time reporting. SmartTriage forms a key component of the Financial Crimes Management Framework, providing core anti-money laundering (AML) and fraud management functionality.

This solution can easily be extended and customized in line with each customer's operations and existing processes relating to the type and identification of risk, products, and customers. This new capability can tie together disparate detection systems for a more comprehensive view of potential alerts, improve the operational efficiency of alerts management processes by up to 60 percent, and also deliver significant cost savings back to the organization.

"In offering an increasing number of products and services with customers across multiple channels, banks and other financial institutions today operate under unprecedented regulatory supervision in the areas of risk, fraud, and compliance, presenting a huge challenge," said Reetu Khosla, Director of Financial Crime Solutions for Pegasystems. "Until now, they have had to manage and investigate thousands of alerts generated every day using manual processes. This approach is a costly and inefficient response, especially as fewer than five percent of alerts are ultimately true hits."

Investigation Management Backbone

The Financial Crimes Management Framework utilizes Pegasystems' industry-leading Build for Change® technology to provide the essential components business users need to develop a fraud and AML alert and investigations backbone that fit their particular organization. As part of this framework, the new SmartTriage functionality automates the management of alerts and investigations from disparate detection systems to ensure enhanced control and compliance, and minimize the processing of false positives. The Financial Crimes Case Management framework provides integrated end-to-end case management from inception to resolution, across lines of business - including retail, brokerage and private wealth management - and risk groups, such as sanctions, high risk customer monitoring, AML, and internal and external fraud.

Key functionality in this framework includes:

• Auto-Duplicate Search - identifies duplicate alerts, ensuring the processing of one alert and auto-resolving what is deemed a duplicate with a comprehensive audit trail.
  
• Auto-Grouping Related Alerts - automated identification and grouping of related alerts by risk patterns into single or multiple cases, based on the type of investigative case and alert attributes. In addition, investigation of related alerts into one case allows for multiple alerts to be managed and resolved by a single investigator, thus improving efficiency.
  
• Behavioral Resolution of Alerts - reducing 'false positives' by automatically resolving alerts based on previous history and due diligence, so increasing straight-through processing (STP) rates.
  
• Auto-Risk Rate - each alert and case is automatically risk-rated, allowing for consistent prioritization and routing of alert ratings received from disparate monitoring systems. SmartTriage also enables dynamic change in risk rating as attributes change to SAR (suspicious activity report) history, Know Your Customer (KYC) data, type of suspicious activity, and number of alerts.