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In this season of scams, WikiLeaks, secret bank accounts overseas, money-laundering et al, the Mumbai-based Infrasoft Technologies Ltd is set to launch an anti-fraud solution for Abu Dhabi Islamic Bank (ADIB) in the next three to four months.
The new IT solution would enable the banking sector diagnose probable fraud on customer's identity and lending, Mr Hanuman Tripathi, Group Managing Director, Infrasoft Technologies, told Business Line here.
The new software would be a deterrent factor not just in cases of money laundering, but also in the prevention of revenue leakage as well as defrauding the banks.
Biggest concern
The biggest concern about money laundering is with respect to the terrorist financing being undertaken using laundered funds which can be minimised using such solutions, he added.
“If there is any transaction through the Indian banking, insurance or stock market channels, we can track down the money sent abroad as well.”
The SEI CMMi Level 5 company, which had launched OmniEnterprise anti-money laundering solution in 2008, is at present giving the final touches to the new product and trial runs are on at ADBI. “They call it an early warning solution,” he said.
OmniEnterprise, being used to track down 112 methods of money laundering, helps identify bank accounts being opened with a fraudulent intention, monitor customer behaviour, change in customer profile and beneficiary relationship the customer has within and outside the bank. The software helps detect cases of money laundering and facilitates internal investigation to arrive at the right conclusion, and also report cases to the Financial Intelligence Unit (FIU) of the country, besides providing the compliance reports.
It connects the external black list report to identify people or organisations of suspicious nature and undertake large-scale customer risk management.
Implementation
The software solution works with banks, insurance companies, broking houses and money exchange companies. So far, Mr Tripathi said it has been implemented in 27 countries by 75 banks and financial services firms. In India, it is being used, or is in the process of implementation by Canara Bank, Yes Bank, IDBI Bank, HDFC Standard Life Insurance, Sahara Life Insurance, Future Generali, IDFC SSKI Broking and L&T Finance. The software offers the financial industry to integrate this solution to their core business solutions supplied by multiple vendors, thereby utilising the existing IT infrastructure of banks and financial services firms.
The anti-money laundering software is being used by banks and financial institutions to detect transactions, account operations or account opening which have an underlying intention to illegally transfer or receive funds. Money laundering is committed with the view to hide unaccounted wealth or assets and avoid paying taxes, he said.
Infrasoft Technologies, a leader in cooperative banking automation process for 15 years, has so far serviced more than 100 banks through complete software solutions for their CBS branches. These banks include Saraswat, Asia's largest bank in the cooperative sector. It has also helped in automation of more than 3,500 branches of public sector banks in India.
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