SAS, money laundering pioneer deliver trade-based solution

20 August 2007

Partnership will address compliance requirements within global trade finance industry

SAS, the leader in business intelligence , has partnered with internationally known trade-based anti-money laundering pioneer Dr. John Zdanowicz to offer a global, trade-based anti-money laundering compliance solution. Zdanowicz’s organisation, International Trade Alert Inc. , an alliance partner of SAS, will deliver an objective, data driven assessment of regions and products most commonly involved with aberrant trade practices.

International Trade Alert’s application combined with the SAS Anti-Money Laundering solution will allow institutions to automate the process of assessing risks posed by their trade financing activities and take action to mitigate those risks. Zdanowicz is partnering with SAS to create a seamless tool to monitor trade-based activities and detect suspicious pricing and transactions.

Recent intense scrutiny from regulatory agencies has led to a greater focus on money laundering through global trade. Trade-based money laundering is defined as the use of international trade to convert large quantities of illicit or “dirty” cash into less conspicuous assets or commodities. In turn, the assets are then moved across borders and sold in seemingly legitimate transactions.

Zdanowicz is the President of International Trade Alert Inc., an organisation that provides international trade data analysis to US government agencies, international agencies, foreign governments and private sector firms. Zdanowicz is a renowned expert in the areas of trade-based money laundering, terrorist financing, income tax evasion, import duty fraud, capital flight and the analysis of international trade data. He is a Professor of Finance at Florida International University.

“SAS Anti-Money Laundering is truly unique in its ability to take immense amounts of data from all areas of an organisation, perform a rigorous analysis and return a prioritised set of situations most likely to represent suspicious behaviour,” said Zdanowicz. “I am honoured to join forces with SAS, a recognised leader in compliance and risk management, to continue to arm organisations with the right tools to efficiently prevent the misuse of the financial system while complying with laws in diverse jurisdictions.”

”In an era of increasing globalisation, anti-money laundering compliance in trade finance poses numerous challenges for international banks. Many institutions rely on manual processes to monitor and detect money laundering schemes. The regulatory community has identified trade-based finance as an area of risk, and subsequently the bar is being raised on expectations of financial institutions to provide better processes and controls,” said David Stewart, Director of SAS Anti-Money Laundering and Financial Crimes. “Together with Dr. Zdanowicz, SAS will now provide more effective and efficient techniques to protect institutions from reputation and regulatory risk.”

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