Informatics launches anti-money laundering software

Recent investigations by the financial authorities' world over have revealed that money laundering activities conducted by various elements that have resulted in action being taken to combat this increasing criminal activity.

Much of the problem lies in a large informal economy and significant cash-based transactions which make Sri Lanka vulnerable to money laundering.

TheCentral Bank of Sri Lanka has proactively taken action in recommending all the Sri Lankan banks to implementing anti-money laundering (AML) solutions.

Money laundering is traditionally conducted in three stages: placement, layering and integration. While placement is the physical depositing of cash, layering describes the process of transactions; some simple, others more complex and often involving transactions within and between banks and across borders, which seek to confuse the trail back to the original cash transaction.

Integration is the process by which the money is brought back into use by the criminal into the regular economy, often by the purchase of assets such as real estate, automobiles and works of art, which appear legitimate purchases.

To combat this problem, Informatics (Private) Limited, with its nearly three-decade long history of providing the best in IT products and services in Sri Lanka, have built key partnerships with global ICT vendors, such as InfrasoftTech, a global leader in anti-money laundering (AML) systems, having provided solutions to over 100 financial services institutions, to launch its proprietary anti-money laundering (AML) software in Sri Lanka.

Group Chief Executive Officer of Informatics Thusha Weerasooriya said: "With regard to banks and similar financial services institutions, the most common process utilised to detect such activity is through technology-based anti-money laundering systems , that are specifically designed to not only flag suspicious transactions but document any and all such activity to aid authorities in their quest to prevent such crime".

Detailing the benefits of this software he pointed out that it provides financial services institutions including banks , the ability to "analyse customer data and detect suspicious transactions. Customer data is filtered and classified according to the level of suspicion and inspected for anomalies. Such anomalies would include any sudden and substantial increase in funds or a large withdrawal".

The solution's focus lies not merely in reporting but in building surveillance on the business processes and transactions that help to enhance safety for banks and their customers.

AML solution data will also help in improving the CRM strategy of banks and hence provide enhanced personalised services.

Informatics and their partner InfrasoftTech recently implemented AML software at Union Bank, marking it the first implementation of such software in Sri Lanka.

The IT Manager at Union Bank said that this Software "will benefit the bank greatly through the monitoring and elimination of instances of AML.