Switzerland-based fintech NetGuardians has launched an anti-money-laundering transaction monitoring solution based on the NG|Screener platform. The NG|Screener platform has been extended and now applies to money-laundering transaction monitoring in a bid to update AML approaches for effectiveness and efficiency.

The AML transaction monitoring solution combines internal and external sources of data to look for behavioural anomalies. This allows it to accurately monitor large volumes of transactions in order to reduce false alerts and improve operational efficiency while cutting costs. According to financialit.

net AML can be a challenge for many banks, particularly in the context of an increasing volume of digital transactions and real-time payments passing through their systems, as well as the techniques used by criminals, which are constantly evolving. According to the same source, banks often have a large amount of data within their legacy systems, and they often rely on static rules. Consequently, investigation costs are pushed up as laundering activities are missed, and false alerts remain high.

NetGuardians uses a combination of machine learning and artificial intelligence to protect its clients’ assets. Some entities that have employed NetGuardians’ software include UOB Singapore, as well as Swiss private banks Pictet and Lombard Odier. Complying with AML/CFT Regulations in Switzerland According to complyadvantage.

com, Switzerland’s primary financial markets regulator, FINMA, requires the firms that it supervises to adopt a risk-based approach to AML/CFT compliance. As a result, Switzerland must assess their customers individually and then deploy a compliance response that corresponds to the level of risk that they face. Accordingly, high-risk customers should be subject to more intensive AML/CFT controls, while low-risk customers may only require simpler measures.

With that said, a firm’s FINMA AML/CFT compliance solution should include measures and controls such as customer due diligence, transaction monitoring, sanctions screening, PEP screening, and adverse media. Other developments from NetGuardians In June 2022, Switzerland-based Basellandschaftliche Kantonalbank (BLKB) has selected NetGuardians’ software as part of a fraud prevention programme. BLKB chose NetGuardians’ fraud mitigation software to further protect its customers in the context of growing payment fraud.

NetGuardians software uses behavioural analytics, artificial intelligence, and machine learning to create accurate customer profiles. Transactions linked to an account are continuously monitored across all channels, and they are compared against the customer profile before being given a risk score. The bank only contacts the customer when the risk score reaches a pre-determined level.

In April 2022, NetGuardians has announced a partnership with fintech Cybera to combat financial fraud. Cybera provides a global platform for blocking and repatriating fraudulent funds and exchanging real-time cybercrime alerts. The company delivers legally essential information to parties all around the world to begin the freezing of stolen funds.

According to a NetGuardians representative, the company can reduce financial fraud by working with organisations like Cybera, and the more these two entities join forces and share their expertise, the more efficient these efforts can become. .