In the fight against money laundering and terror financing, overwhelming legal changes are currently being implemented. Already in the context of the AO (tax code), keyword "GDPdU" (data access and controllability of digital documents) and interpretation for adherence to the EEC Financial Sanction Regulations (EG-FSVO), extensive law amendments were released. Besides completely new procedures for the determination of the Rating are introduced in connection with the Basel II agreement.
Under the generic term "Compliance", ACTIS offers an adequate solution to its customers covering the numerous new requirements. This extensive support is only possible by using an integrated software solution such as PABA/Q, which automates all divisions of a bank.
On July 1 2002, the fourth Financial Market Promotion Law stepped in strength in Germany. A goal of the changed Financial Market Promotion Law is, apart from the increase of the international competitive ability of the German financial places and the improvement of the investor protection, a stronger punishment against prices and market manipulations as well as an increase of transparency of the capital markets. Starting from 01.04.2003, paragraph 24c KWG obligates the German credit institutes to allow the electronic access to certain account information for the German supervision authority of financial services (BAFin). ACTIS is currently developing a solution for the complete collection of the required data as well as for supplying an appropriate retrieval file. These data are transmitted later via an interface to an account evidence centre, which keeps them available for the requirements of the BAFin. As soon as the PABA/Q users decide for an account evidence service centre and the respective interface description is available, ACTIS will also offer the appropriate interface.
On 15.08.2002, the money laundering law was replaced by the money laundering fight law (GwG). The amended paragraph 25a KWG obligates the banks to filter account data to detect deviations from the standard practices (accounts screening). It is intended that the banks pursue a strict "Know your customer" politics. A new functionality in PABA/Q, the "monitoring function for the money laundering fight", allows a flexible evaluation of "noteworthy transactions" in all divisions to the bank.
The principles about the data access and for the controllability of digital documents were changed in the course of the law on tax reduction with effect on 01.01.2002. With these changes, in the context of the fiscal external audit (audit of operating results) extensive rights of access to the IT accounting records of the credit institutes are granted to the financial authorities. Tax-relevant data must be archived for the duration of the fiscal storage obligations (normally 10 years) and be made available for examinations. ACTIS is in direct contact with the Ministry of Finance and offers a solution for "data archiving and access in accordance with GDPdU" to support this legal requirement.
The German Federal Bank communicated in June 2002 new directions to the credit institutes for adherence to the EEC financial sanction regulations (EG-FSVO). The result is an obligation to check in and outgoing payments and customers and/or accounts results against the so-called Terror List, which is regularly updated among others by the Federal Bank. If a suspicious payment person or organisation is recognised by a credit institute, it has to be indicated to the Federal Bank in a given report form. To be also compliant with this requirement, ACTIS offers a new automatism, which uses for the further optimisation of security in the future also a "indistinct" comparison algorithm.
With the conversion of the suggestions of the committee for state supervision of the Bank for International Payment Clearing about the modification of the own capital funds requirements of credit institutes (keyword "Basel II") the meaning of Ratings for credit institutes is enormously strengthened. In the near future the Rating of an applicant for granting a credit will be the substantial key quality classification criterion, according to which the own capital funds supporting is determined. ACTIS stays in close contact with its users in relation with this topic and the possibility for the administration of credit risk and Rating in PABA/Q will be already available at the beginning of 2003. The various possibilities for an interface solution to the Rating engine of the Bank-Verlag in Cologne were presented to the PABA/Q users and are being discussed.
PABA/Q is a complete solution for banks. For supporting the multiplicity of new legal requirements, the necessary data can be extracted and prepared from a central "pool". This saves an immense time effort and therefore costs. Last but not least, the fact that no redundant interface is required, substantially contributes to security.