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Use Case

Banking Institution - AML Compliance​

Scenario​

Financial institutions and banking platforms are required to adhere to strict anti-money laundering (AML) regulations to prevent illicit financial activities. As money laundering techniques become increasingly sophisticated, these platforms need a robust solution to detect adverse media, identify politically exposed persons (PEPs), and screen for sanctioned individuals.

Solution​

Sigma Anti-Money Laundering (AML) is integrated into the platform's compliance system. The solution specializes in:

  • Adverse Media Detection: Scans global news and media sources to identify negative information about individuals or entities.
  • Politically Exposed Persons (PEPs) Identification: Flags individuals with prominent public positions or politically exposed persons who may pose a higher risk of corruption or bribery.
  • Sanctions Screening: Cross-references customer data against global sanctions lists to ensure compliance with international regulations.

Using advanced algorithms and real-time data analysis, Sigma generates risk profiles for individuals and entities, enabling you to take proactive measures against money laundering activities.

Use Cases​

  1. Transaction Monitoring: During financial transactions, Sigma checks both the sender and receiver names against worldwide PEP and sanctions lists. This involves analyzing transaction data in real-time to ensure compliance and flag any high-risk activities.

  2. Customer Onboarding: During the registration or onboarding process to your application, Sigma can screen the new customer's name against the PEP & sanctions list. This ensures that potential risks are identified before establishing a business relationship.

  3. Entity Screening: Sigma allows for normal compliance checks by sending entity data (e.g., customer or partner information). This data is screened against PEP and sanctions lists, as well as adverse media sources, to maintain ongoing compliance.

Anti-Money Laundering Flow Diagram

Outcome​

  • Enhanced Compliance: Sigma ensures adherence to global AML regulations, reducing the risk of penalties and reputational damage.
  • Proactive Risk Mitigation: By identifying high-risk individuals and suspicious activities early, Sigma minimizes exposure to financial crimes.
  • Operational Efficiency: Automated screening and monitoring reduce manual effort, allowing compliance teams to focus on high-priority cases.
  • Reputation Protection: Demonstrating a commitment to combating financial crimes builds trust with regulators, customers, and stakeholders.