1

2

<Insert Picture Here>

3rd party logo

Oracle Watchlist Screening

Mike Matthews

3

Topics

• Screening trends & needs

• Increasing screening data accuracy

• Reducing false positives

• Screening international data

• Prioritizing highest potential risks

• Shortening review cycles

• Q&A

4

Oracle Watchlist Screening: Selected Customers

5

The 2nd Wave of Compliance

2002 - 2008 2009 - 2015

Transaction Modelling (TM)• Detect suspicious behaviour • Pattern recognition• Statistical modelling• Behavioural analysis• ££M costs

Transaction Screening (TS)• Message Parsing• Watch list filtering (basic)• ££M costs

Many failures:• Troubled/lengthy deployments • Missed Sanctions hits • False Positives +++• High acquisition & operational costs

6

Leading the 2nd Wave

2002 - 2008 2009 - 2015

Customer Screening (CS)• Sanctions, PEPs, Risk screening• Vast quantities of customer data• Disparate systems, data structures, formats,

languages, alphabets• Breadth + depth of data analysis & search

capabilities

• Intelligent data optimization recognized as critical

• Advanced algorithms required for data variance, anomalies, data quality, transliteration and transcription

• Widespread recognition that greater accuracy = large reduction in false positives

• Compliance cost reduction• S-M-L: all sizes - all sectors

• not just for Tier 1’s

Transaction Modelling (TM)• Detect suspicious behaviour • Pattern recognition• Statistical modelling• Behavioural analysis• ££M costs

Transaction Screening (TS)• Message Parsing• Watch list filtering (basic)• ££M costs

Many failures:• Troubled/lengthy deployments • Missed Sanctions hits • False Positives +++• High acquisition & operational costs

7

2nd Wave Requirements:

1. Maximum Operational Effectiveness

• False positives – dramatic reductions

• High accuracy

• Any data / anywhere

• Zero screening limitations (frequency, volumes, watch lists)

• Deploy anywhere

• Multi-lingual, multi-cultural environment

2. Optimum Cost Efficiency

• Risk Scoring, Case Management: reduces review (cycle) time

• Compliance workflow, case routing: speeds case workload

• Advanced language capabilities: reduces costs for international business

• Scales from a laptop to the Data Centre

8

New markets...new challenges

POCA

FCPA

UK Bribery Act

Increasing Legislation, Regulation & Guidance

FATF JMLSG

USA PATRIOT Act

EAR

Customers

Partners

Suppliers Employees

Expanding Boundaries of Risk

PortsVessels

Contractors

Universal Risk Screening Requirements

EU 3rd MLD

BSA

Financial Services

Mobile Operators

Gambling

3PL/Trade ExportBroader Markets Facing Legislation

MSBsAuto Finance

Tobacco

Law Firms

OFAC

9

Oracle Watchlist Screening

10

Introducing Oracle Watchlist Screening

• What is it?

– A comprehensive risk and compliance screening application

– Chosen by over 160 customers globally

– Agnostic to data being screened

– Screens in batch and real-time

– Comprehensive reviewer and management tools

• How does it benefit you?

– Reduces the cost of meeting compliance obligations

– Reduces the chances of undetected risk sources

– Simplifies screening of international data

– Minimizes vendor dependency

– Makes it easier to demonstrate enhanced due diligence

11

Oracle Watchlist Screening: unparalleled screening accuracy

12

Accurate Data = Accurate Screening

1. ‘Overfilling’ of name data

2. Poor spelling of name and address information

3. Multiple names stored in a single field

4. Name information ‘misfielded’ into addresses

5. Date of Birth information in various formats

6. Entities and individuals mixed together

7. Non-standard name constructs

8. Poorly fielded address information

9. Non-standard country information

13

Customer Data Preparation

Understand StandardiseStructure Re-structure EnrichDownload

ISOCountry

AliasTagging

Name Analytics

OccupationAnalytics

Dedupe

CountryFrom City

GenderAnalytics

YOB Inference

CountryInference

Phrase Profiling

EntityHints

Look ups

Spellings

MisusedFields

Split Records

LinguisticEquivalency

Phone No.Analytics

EmailAnalytics

14

OFAC List

15

10 Aliases, 2 DOBs

16

19 Aliases, 4 Locations

17

Simplifying international data screening

• New geographies – new risks

– PEPs and their associates

– Embargoed Countries

• Multiple writing systems in use

• Oracle Watchlist Screening

– Optional Language & Country Packs

– 45 languages & 57 countries

– Cyrillic

– Greek

– Chinese

– Arabic

– Hangul (Korean)

– Kanji, Hiragana and Katakana

(Japanese)

18

Transliteration Example: Greek

• Mostly character level but with some complex rules

• Uses the standard EDQ Transliterator processor with the Greek

to Latin option, and a few simple additional rules (removing

‘Diacritics’ etc.):

19

Name Variant Recognition Example: Russian

• Dictionaries are provided to recognize and

match different transliterations of the same

Russian name (that might exist on lists) >>>

• …and also Nicknames >

20

Transcription Example: Arabic

• For Arabic, transliteration does not work

– e.g. محمد is transliterated by most methods to ‘mhmd’ but really represents ‘Muhammad’

• Direct transcription is required. This uses a dictionary which recognises more than 200,000 names, and over 5m transliterated variants of those names

21

Prioritizing highest potential risks

• Risk Scores provide measures of relative risk of doing business with

individuals or entities

• Ensures priority is given to reviewing high risk individuals/entities

• Automates the closure of low confidence/low risk matches avoiding

unnecessary review work

• Ensures effective use of resources by prioritising work activity

• Reduces the burden maintaining PEPs whilst continuing to demonstrate

enhanced due diligence

22

Externally calculated Risk Scores may be used – for example

Safe Banking Systems Risk Score

Original

Watchlist

record

SAFE EI risk

score

23

Filters provide links

to investigators

work queue

Cases ranked in priority

order presenting highest

risk first

Shortcuts to

workflow MI

reporting

24

Configurable Workflows

• Standard 4-Eye Workflow

• Customizable

25

Match rules tells us why this case has

been flagged as a potential match

Customer

Data

Watchlist

Data

Audit log and comment

capability provide a full

investigation history

Hyperlinks to Watchlist profile,

web search & other external

sources

Click to confirm match decision

and add comments

26

Monitor progress of

case investigations

Manage workload

across the team

27

Realtime screening of

individuals and entities

Match score and risk

score highlight degree of

risk

Link to Case Management for

fully audited and tracked

investigations

28

Q&A

29

30