With the introduction of the EU’s Fourth Anti-Money Laundering Directive (4MLD) on June 26th this year Trapets AB, a global provider of Trading Surveillance, Anti Money Laundering (AML) and Counter Terrorism Finance (CTF) solutions, today announces that it will make available a risk-based AML system to the London market, with a strong holistic approach, yet very affordable being used widely in Scandinavia.
Despite BREXIT the way in which 4MLD is implemented in the UK is unlikely to change. The new regulations have wide ranging effects particularly in the area of risk assessments for AML, CTF and Customer Due Diligence. Firms need to be able to thoroughly document their risk-based approaches with regulators being even stricter in these areas. These types of risk assessments are supported in Trapets system solutions.
Trapets InstantWatch AML analyses the flow of financial transactions in real time or batch and alerts according to a configurable rule system. The AML module provides automatic surveillance against money laundering and terrorist financing. The system performs an automatic risk calculation of customers, accounts, and transactions factoring in properties such as nationality, country of residence, account type, and product providing the basis for the risk analysis. Firms’ customers will automatically be placed into risk groups by the software with the system’s automatic monitoring module performing advanced pattern analysis of each transaction.
InstantWatch AML contains all the alert types needed by financial institutions, according to the specified scenarios in the EU’s Fourth AML directive and other laws or regulations. The user can by themselves configure alert triggers and set the thresholds in real time. The AML module is integrated to InstantWatch KYC, a quick and accessible internet service for screening of customers. The system automatically checks customers against sanction/terrorist lists and PEP lists, both at onboarding and on a continuous basis. InstantWatch also handles KYC questions & answers which makes investigation of alerts faster and easier.
Gunnar Wexell, Chairman at Trapets AB commented, “4MLD places a greater emphasis on risk analysis borne out by the fact that ‘risk’ appears 149 times in 4MLD as compared to 36 times in 3MLD. We therefore felt that the introduction of an affordable risk-based AML system to London firms is timely. Fortunately we have been running this type of service in Scandinavia for many years so have a tried and tested solution.”
4MLD contains a rigorous set of regulations that, regulators hope, will result in firms making their customer due diligence processes much stronger. In the eyes of the regulators failure to do so could be costly, resulting in sanctions as well as fines. These could be considerable with fines being up to 10% of a company’s annual turnover not to mention the reputational damage that could result.
Trapets AB is Sweden’s pre-eminent provider of market leading AML, KYC and Trading Surveillance solutions and associated technologies. Uniquely Trapets can provide Outsourced Trading Surveillance (OTS) where a team of experts within Trapets perform the operational surveillance tasks on behalf of the client including detection, investigation, and documentation and reporting of suspicious transactions and orders. The company also offers exemplary advice on the ‘best fit’ compliance solutions for the capital markets accompanied by fully project managed implementation, consultancy and maintenance services.