Financial institutions are challenged with fighting fraud and financial crime in an environment of enhanced regulatory scrutiny. The regulatory environment has caused financial institutions to evaluate the management of their Anti-Money Laundering (“AML”) and Fraud programs to ensure tighter internal controls. Beyond the possibility of financial losses, firms must worry about reputational risk and compliance with BSA / AML / KYC, OFAC regulations, the USA PATRIOT Act, and more. Some of the key operational challenges include:

Managing high volumes of exceptions generated through disparate suspicious activity monitoring and fraud detection systems
The high cost and risk associated with manual processing
Ensuring fully auditable processes, while ensuring timeliness, documentation and risks are managed
Frequently changing regulatory requirements that often carry significant financial penalties for violation

Solution

Pegasystems Financial Crimes Framework allows for the management of alerts and investigations on one centralized backbone. The framework allows financial institutions to embrace rules-driven business process management (BPM) as they benefit from Pegasystems’ depth of industry knowledge and best practices in AML and Fraud investigations case management.

Pegasystems’ Smart Business Process Management (SmartBPM®) solutions are tailor-made to help financial organizations regain control over fraud and suspicious activity. By combining the power of the leading business-rules engine, PegaRULES®, and the leading Business Process Management application, Pegasystems delivers powerful yet highly flexible solutions for the world’s largest financial services firms, including HSBC, JPMorgan Chase, Allstate, ANICO, and TD Bank Financial Group.

Investigation Case Management
Security and Audit Trail
Flexibility, Extensibility, and Enterprise Scalability
Solution Frameworks

Investigation Case Management

For many companies, the greatest challenge is not detecting suspicious activity, but effectively and efficiently managing both customer claims and internally identified risk events. Pegasystems’ BPM capabilities provide end-to-end control over fraud and suspicious activity by complementing a PegaRULES detection solution or the institution’s existing detection systems.

Pegasystems' SmartBPM Suite, recognized as an industry "leader" by both Gartner and Forrester Research, delivers robust case-management solutions by applying the full power of the Six Rs:

Receive — Integrate systems for maximum intelligence, using standards-based integration facilities. Create cases automatically based on risk events identified within Pegasystems or other applications, or allow manual case entry. Manage any type of structured data or unstructured content, such as images and reports — whether stored within Pegasystems or in external content-management repositories.
Route — Route cases to departmental workgroups or individual operators according to risk type, product type, transaction value, customer segment, operator skills, or other relevant factors. Apply tailored service levels to ensure timely resolution or escalation of the case.
Report — Automatically populate and publish Suspicious Activity Reports (SARs) based on case data for easy filing. Deliver insight to management via real-time dashboards and historical reports. Use over 100 pre-packaged reports, or quickly create new reports on outstanding risk, historical risk trends, timeliness of case resolution, and other topics of interest.
Research — PegaRULES intelligently determines what information is needed to process each case, then retrieves it from the appropriate system. When information is not available electronically, the system prompts the user to enter just the required information — no more and no less.
Respond — Use secure, multi-channel communications (email, web, fax, letter) to prompt relationship managers, other employees, and external parties for information about transactions; communicate requests and status updates to customers; and submit SARs to FinCEN (the Financial Crimes Enforcement Network).
Resolve — Perform straight-through processing of cases whenever possible, using rules defined by the business and managed by business and IT. Eliminate any manual steps that can be automated.

Security and Audit Trail

Pegasystems enables a secure AML Investigation environment by leveraging "Triple A" security parameters: authentication, authorization, and auditing.

Authentication can be achieved in many ways, including internally, externally, or universally e.g., via an enterprise single sign-on solution).
Authorization is accomplished by assigning privileges to roles. Users have specific roles that are assigned to them, thus granting or denying them access to system functionality and work information. The SmartBPM Suite delivers pre-defined security privileges out of the box, for different classes of users.
Auditing documents which actions were performed on work information (cases) or application rules, at what time, and by whom. Audit information is available via XML for reporting, and is displayed in each case. The solution also includes standard reports for auditing, as well as the ability to customize reports.

Flexibility, Extensibility, and Enterprise Scalability

Only Pegasystems’ SmartBPM Suite provides key capabilities for management of enterprise Fraud and Anti-Money Laundering. The use of visual workflows, rule forms, and drag-and-drop user interfaces — instead of traditional code that’s accessible only to programmers — delivers true flexibility and business agility. This allows companies to model, design, implement, and change functionality in hours and days, rather than months.

Due to this flexibility, the application can be extended to support new types of fraud and suspicious-activity detection and processing in record time — across risk categories (e.g., fraud, money laundering, terrorist financing), product types, and geographies. Not only can firms quickly roll out the solution to new areas, they can dramatically reduce investment and ongoing maintenance expense by consolidating on a smaller number of solutions. Furthermore, common business policies can be applied at an enterprise or division level, while specialized rules can be used for specific types of risk events. This prevents the firm from having to re-code logic many times when a common process or policy changes across the company (e.g., if SAR guidelines change).

Lastly, Pegasystems set a scalability world record for case- and process-management solutions when it recently conducted a joint test with IBM. The test found that PegaRULES Process Commander® (PRPC), the process-management engine of the SmartBPM Suite, could support 31,500 concurrent users creating and processing 3 million unique cases over an eight-hour period, involving a total of 88 million business-process operations — all with an average system-response time of only 0.05 seconds. The SmartBPM Suite was architected for the most demanding enterprise use, and the joint Pegasystems/IBM test bears this out.

Solution Frameworks

Pegasystems’ Solution Frameworks accelerate the deployment of fraud and financial crime detection and case-management solutions. With packaged frameworks for the banking, insurance, and healthcare industries — as well as cross-industry frameworks for compliance, customer contact management, and other functions — your company will be able to further lower risk and speed time to value.

Pegasystems' Unique Benefits

Pegasystems uniquely delivers the following key benefits, allowing financial institutions to regain control over fraud and suspicious activity:

Time to Value — Unlike many conventional point solutions that may take years to begin delivering value, Pegasystems' solutions introduce rapid development and deployment. Customers often bring their SmartBPM solutions into production within 90 days.
Optimizing across the Business — Pegasystems alone supports the use of both shared and specialized business logic. In this way, your company can establish enterprise-, division-, geography-, and even customer-level rules that guide the handling of each event in the best possible way.
Flexibility and Rapid Change — The SmartBPM Suite enables rapid change through unmatched flexibility. Business logic is managed within user-friendly rule forms and visual workflows, rather than hard-coded application logic. An additional benefit is that the lines of business can directly manage event-detection and investigation-handling policies under the full oversight of IT, thus promoting improved IT/business collaboration.
Reduced Losses, Claims Leakage, and Fines — Ultimately, Pegasystems delivers better risk management for lower losses and prevention of fines. Leading organizations keep up with fraud and financial crime by moving quickly, remaining flexible, and evolving their processes over time.

Solutions In Action


Swiss Bank Ups Close Rate	New Tools Enhance CRM Operations	Enterprise Backbone Saves $10 Million	Better Tools Cut Losses
Bank BPM in 90 Days	Solution Delights Customers	BPM System Speeds Set Up	Compliance and Fraud System Cuts Losses
Account Openings Surge With BPM	CRM and Fulfillment in Five Months	New Backbone Halves Labor Costs	Government Agency Improves Services
Automated Approvals Cut Risk	Bank Gets One Stop Service	BPM System Serves 26 Countries	Investigator Effectiveness up 40%