Compliance Product
eCompliance
Process Management
(eCPM)
December 8th 2014
1 eCPM --- An electronic Compliance Tool par excellence
The eCompliance Process Management (eCPM) System by Eurospider is the par excellence solution in respect of the regulations against money laundering, terrorism financing, tax evasion and tax fraud. eCPM is assisting the compli-ance officer in being compliant with the growing number of regulations, which are becoming more and more complex.
2 Complete Process Chain
A major advantage of the eCPM system is that it covers the entire process.
It is automatically capturing sanctions lists, profiles of politically exposed per-sons (PEP’s), indicias for illegal activities (CRIME), and FATCA/CRS informa-tion (TAX). The eCPM server version automatically updates the KYC Records every night.
The scanning of customer lists can be executed either manually or automati-cally according to a customized schedule (server version only). All matches are stored in a database and enter a workflow.
Within this workflow, compliance officers verify the matches by distinguishing between true positives and false negatives. In the case of true positives, he or she assigns a risk category (SANCTIONED, PEP, CRIME, TAX) and then closes the alert.
Closed alerts are documented with PDF’s and strored in an archive from whe-re it can be whe-retrieved any time. This audit function completes the process chain.
3 Automatization
In the case of eCPM, electronic assistance means the avoidance of manual work whenever possible. The automatization implies standard procedures which are, as opposed to manual procedures, less error prone. eCPM provi-des a leading edge process automatization. This incluprovi-des among others the automatic update of the KYC Records and the automatically executed scans. Another important aspect of automatization is related to whitelisting. Frequent scans do not impose more verification work because of intelligent whitelisting. Alerts have have to be verified only, if relevant information has changed since the last verification.
Not to mention the outstanding matching quality minimizing the false alarms, i.e. the false positives. The matching quality reduces significantly the verificati-on work.
4 Easy installation and integration
Another advantage of eCPM is the minimal impact on the internal IT. The in-tegration of the CRM system into the eCPM system is based on a simple transfer of CSV-files (Comma Separated Values). Most CRM systems sup-port the exsup-port of CSV files in a simple way. eCPM includes an archive with auditable documents and other data.
5 Overview
The following picture shows a simplified view on some roles and use cases.
The Scan Administrator (SCA) is responsible of the scanning of customer lists, i.e. the so called SCAN’s. The SCA defines the origin of the customer
lists and either defines the scanning schedules (e.g. every Sunday at 22:00) or triggers the scans manually.
The Back Officer (BO) or the Chief Compliance Officer (CCO) can CHECK and submit single customers (persons or organizations) as alerts to the verif
i-cation workflow.
All scanned customers, including the manually submitted customers, are jour-nalized by the system for the sake of auditability.
By means of VERIFY, the CCO investigates the matches of an alert of the verification workflow and decides whether it is a true or false alert. Is it a true positive or false negative alert, the CCO also has to assign the corresponding risk categories, such as SANCTIONED, PEP, CRIME or TAX.
The CCO can RETRIVE scanned and submitted customers and check the details such as status (new, work in progress, or closed), verifier, time, assig-ned risk criteria, etc.
Finally, the CCO can generate various reports. Among them is the manage-ment summary report, containing the number of alerts grouped by status and the number of customers grouped by the assigned risk categories. Other re-ports contain the list of customers which are PEPs or the list of open alerts, i.e. alerts that haven’t been verified yet.
There are more roles and use cases as shown in the diagram above. The user
manual describes all roles and use cases in detail.
6 Server and Desktop Version
The eCPM desktop version is an inexpensive version where client and server are packaged. It can be used by several users, but not simultaneously. Upda-ting records and execuUpda-ting scans are issued manually.
The server version is accessible simultaneously by several clients. The auto-matic update of the records and execution of autoauto-matic scans can be configu-red in a flexible way.
Both versions contain an embedded database; hence, there is no need for an extra database. All data is stored in files in a directory which can be backed up in a simple way.
7 Quick Check (optional)
CPM is offering optionally a so called Quick Check which can be made ac-cessible in the intranet of the financial institution. Relationship managers can benefit from the Quick Check at an early stage of the on-boarding process by checking potential risks.
The Quick Check function is based on daily updated content and on a mat-ching profile specified by compliance. In this way, unwanted surprises are avoided to a large extent. The data of the prospect is transmitted stricly inter-nally and complete confidentaility is guaranteed as opposed to an online check.
The following screenshot shows the result of a quick check which can be stored or printed
8 Transaction Filtering (optional)
Transaction filtering is an optional eCPM service to check transactions. The
following information is transmitted to the service:
• transaction id, • ordering customer, • beneficiary customer,
• remittance and other Information,
• other fields.
The service returns either negative (no match) or positive (possible match). In the latter case the matching fields are ruturned as well.
To minimize false alarms, the partial matches are weighted and the decision positive/negative depends on the overall score.
9 Client-Server Version Requirements Server Hardware (optimal)
• RAM: 4096 MB
• CPU: 4 Cores, not older than 3 years
• Storage: The software and the data requires at least 20 GB (depends on the size and the frequency of the scans)
Operating System
• Recent Linux distribution (any distribution supporting the software below) • Windows Server 2008 or newer
Software • Java SE 7
• Apache HTTP Server 2.x • Apache Tomcat 7.x
Client Hardware (optimal) • RAM: 512 MB
• CPU: Not older than 5 years
Operating System
• Windows XP or newer
• OS X • Linux
• Any operating system supporting Java SE 7 and the Java Web Start Tech-nology
Software • Java SE 7
10 Desktop Version Requirements Desktop Hardware (optimal)
• RAM: 4096 MB
• CPU: 2 Cores, not older than 3 years
• Storage: The software and the data requires at least 20 GB (depends on the size and the frequency of the scans)
Operating System
• Windows XP or newer
Interested?
Do not hesitate to contact Peter Schäuble Address:
Eurospider Information Technology AG Schaffhauserstrasse 18
8006 Zurich, Switzerland
Telefon: +41 43 255 25 25 Internet: www.eurospider.com
