NICE Actimize – ENGAGE 2023
Industry’s Premier Financial Crime & Compliance Risk Management Event
The event had NICE Actimize and industry experts discuss topics such as the risks and rewards of Generative AI and the role of Network Analytics in uncovering inferred risk.
About NICE Actimize ENGAGE
The NICE Actimize ENGAGE event addressed top priorities in anti money laundering, markets and conduct surveillance, enterprise fraud prevention, and case management & technology. Some of the notable topics covered during the event sessions include “Generative AI: Unpacking the Risks and Rewards for Financial Institutions” and “Connecting the Dots to Uncover Hidden Risks.” This NICE event also had additional sessions exploring a range of issues, from operational concerns to futuristic technology, among them: “End-to-End Fraud Management: Detection, Prevention, Operations, and Investigations;” “Optimized KYC: Are We Ever Going to Get There?” and “The Future of Voice and Electronic Communications Surveillance.”
This NICE ENGAGE live event covered every aspect of financial crime and navigates the fast-paced changes in artificial intelligence, network analytics, data management, and more, helping financial institutions plan effective strategies for their future. NICE ENGAGE is focused on helping banks and financial institutions understand why they require a powerful combination of intelligence and automation to meet their challenges.
Company Overview and Purpose
NICE Actimize products, solutions, and subject matter expertise
Knowing the risk of your customers is critical while offering financial products to maximize revenue. If the compliance team does not properly evaluate and manage the risk, companies will fall prey to cyber criminals. Any slack in understanding the customer can be dangerous. If the risks they pose are not monitored, the compliance team will be flooded with false positives, diverting them from real suspicious activities which can cause damage. Manually processes can further heighten this risk as regulatory pressures grow. To counter such challenges, risk exposure must be continually assessed and processes optimised to enable better financial risk management.
NICE Actimize takes this fight back to the cybercriminals with its industry-proven, AI-infused solutions. NICE Actimize’s entity centric approach gives the power and flexibility to effectively manage money laundering risks across the customer life cycle. NICE software company, with its entity centric AML Actimize solutions ensures full AML & anti-fraud advanced compliance. Actimize software solutions are purpose-built, providing end-to-end coverage from customer onboarding to ongoing monitoring and investigation of suspicious activity. Actimize software solutions enable an accurate understanding of each customer’s risk across KYC, risk screening, and transaction monitoring.
You can visit the NICE site here: https://www.niceactimize.com/.
Get details about NICE corporate leadership here: https://www.nice.com/company/global-leadership
Collaboration between Ness and NICE Actimize
Ness is NICE Actimize’s trusted AML (Anti Money Laundering) engineering partner. We collaborate with Actimize to help clients leverage our deep product expertise to accelerate AML Actimize implementation.
Accelerating Actimize implementation
Ness’s Risk Management Services primarily focuses on delivering data management solutions around NICE Actimize’s AML, Fraud, and KYC offerings. With a solid understanding of the AML and fraud domain, Ness, through its consultative approach, can accelerate banking and financial services AML/fraud implementation initiatives by integrating gap assessment and data management efforts (ingestion/mapping/cleansing), leading to an effective data migration leading to faster client onboarding and ROI realization.
NICE Actimize and AML Solutions
Overview of NICE Actimize
- Introduction to NICE Actimize as a company
NICE Ltd is a leading financial crime technology and compliance management company offering a range of solutions for anti money laundering, fraud, and compliance. It protects companies by securing customer data and organizational assets by mitigating risks posed by payment fraud, cybercrime, sanctions monitoring, market abuse, customer due diligence and insider trading through its fraud prevention, anti-money laundering detection, and trade surveillance solutions.
- NICE Actimize software solutions and its capabilities
AML solutions from NICE Actimize enable you to mitigate risks related to financial crime. The technology used in NICE AML solutions helps strengthen your understanding of your customers and their risks. With the power of AI-ML, these solutions can optimize efficacy and accuracy and ensure comprehensive regulatory compliance and auditability.
Enterprise fraud management
Banks and financial institutions need next-gen tools to proactively detect and mitigate the risk of sophisticated fraud threats to secure customer journeys and protect the institution. NICE bank fraud management software offers comprehensive and continuous real-time fraud prevention coverage with its enterprise fraud management solution to tackle new and emerging threat vectors.
Financial markets compliance
To meet regulatory needs, financial institutions must have a clear view of their assets, instruments, communications, markets, and jurisdictions. The trade compliance platform from NICE empowers organizations to analyze and correlate trade related data to ensure surveillance of regulatory needs and detect risks.
Investigation and case management
Mitigating risk and its investigation is a complex and costly process. NICE provide a new approach to alert and risk case management (rcm) by enabling analysts to minimize investigation time and improve decision making. The NICE Actimize rcm technology solution can ensure a centralized, consolidated, and correlated data driven intelligence to manage workflows, risks, support new investigations and ensure oversight.Data intelligence
Customer insights are needed to make informed decisions that can reduce regulatory, financial, legal, and reputational risks. By accessing a wide variety of data sources, NICE Ltd provides organizations with a thorough understanding of their customers and the risks associated with them. NICE Actimize offers data intelligence solutions to enable firms to act quickly with precision and take action to mitigate risk and meet compliance events.
- Key features of NICE Actimize platforms
NICE Actimize offers two platforms. X-sight and Xceed. X-sight helps you to break the limits of data and analytics. The platform is built for enterprise scalability and brings financial crime risk management with cloud-powered core services. X-sight can introduce data from any source and offers analytics and intelligent automation. It is capable of identifying threat vectors easily and offers platform automation and management. Companies can manage costs and operational scale while meeting financial crime compliance in banking needs. Xceed is a cloud-based platform that unifies AML and fraud solutions. It has self-learning capabilities to quickly adapt to new attacks and changes in customer behavior. The Actimize platform offers real-time behavior-based analytics, AML dashboard, and ML capabilities for higher detection accuracy, ensuring lower false positives, providing a 360-degree view of risk, and maximizing efficiency.
Understanding AML (Anti Money Laundering)
- Definition and importance of AML
AML consists of laws, regulations, processes and procedures which are designed to detect activities such as money laundering, multiple transactions which are below thresholds, complex transaction patterns, terrorism financing, and different types of financial crimes. AML is essential for financial institutions and businesses to secure the integrity of their financial systems and reduce risks of financial crimes. AML also facilitates customer due diligence, which will help in verifying customer identities and risk profiles so that they don’t indulge in any illicit activities.
- Role of AML solutions in financial institutions
AML solutions play a critical role in detecting and mitigating illicit financial activities. AML solutions help in maintaining compliance programs to meet regulatory needs. It helps to establish risk-based controls to conduct customer due diligence, monitor transaction patterns using ML algorithms and rule-based controls, report suspicious activities to regulatory authorities, and maintain records for audits and meeting reporting obligations.
Collaboration between Ness and NICE Actimize
- AML partnership and its benefits
By partnering with NICE software, Ness can eliminate integration barriers for clients, resulting in low cost in ownership, faster time to value and better customer experiences. This partnership helps Ness to offer its best-in-class delivery capabilities, AML managed services and resell financial crimes consulting software solutions of NICE.
- How Ness enables AML adoption
Ness enables NICE Actimize in AML product development and platform modernization. Ness also helps NICE in AML customer onboarding and assessment. Ness conducts gap assessments to analyze source data sources and identify gaps with target data sources. This also includes the evaluation of technical compatibilities and customization work needed for AML implementation and preparing a detailed execution plan for data transformation and validation that will be integrated with the AML implementation plan. Ness also validates data quality for production. This is through integration testing of data to be used for production usage and facilitate UAT testing. Ness can conduct full data services that will accelerate Actimize AML software Implementation.
- Contextual Gap Assessment for onboarding processes
Ness can enable AML adoption through a contextual gap assessment by looking at the client’s onboarding processes and fast-track implementation through machine learning-assisted data management solutions.
- Machine Learning-assisted data management solutions
Ness offers full data management solutions to accelerate Actimize AML implementation. This includes data integration activities around creating connectors for batch and streaming sources, data acquisition activities for structured and unstructured data, data analysis activities in mapping sources and sink data models, mapping static and reference data., and data transformation activities around normalization, cleaning, de-duplication, entity resolution. Ness Actimize data services would enable clients onboard AML solution modules like SAM (Suspicious Activity Monitoring), CDD (Customer Due Diligence), and WLF (Watch List Filtering), etc.
NICE Actimize and Industry Trends
Emerging trends in AML and financial investigations
- Technological advancements shaping the industry
The future of financial crime solutions needs a holistic approach that brings together next-gen technologies with human expertise, regulatory frameworks, and collaboration among stakeholders. AI-ML has shown immense promise in finding patterns and anomalies in financial data. These technologies can analyze large amounts of structured and unstructured data in real-time to identify suspicious activities and detect risks. AI-ML will also enable the advancements of AI-powered systems for accurate and proactive detection of financial fraud. Big data analytics techniques will help in getting deeper insights into customer behavior, find hidden data relationships, and detect money laundering activities. Real-time data analytics also enhances fraud prevention and detection capabilities. User-based behavioral analytics will be widely used to analyze employee behavior, transactional patterns, or any deviation from baseline activity. There will be better collaboration and intelligence sharing between financial institutions to ensure coordinated response towards emerging threats. There will be extensive adoption of advanced Customer Due Diligence (CDD) measures like biometric identification, facial recognition, and digital identity verification. These technological interventions will also mitigate risks of identity theft or customer impersonation.
- Regulatory updates impacting AML practices
Regulatory practices are continuously enhanced to meet emerging risks and maintain the integrity of the financial ecosystem. The European Union has brought in two directives to reinforce AML regulations. 5AMLD and 6AMLD. 5AMLD is meant to address virtual currencies, improve due diligence, and enhance the transparency of beneficial ownership. 6 AMLD is to harmonize criminalization and sanctions towards money laundering offenses, enforce penalties, and introduce provisions for cooperation between EU states. Financial Action Task Force is a global standard for AML and counter-terrorism financing efforts. They also give guidance on risk assessments, customer due diligence (CDD), suspicious transaction reporting, including international cooperation. Most financial institutions and countries are aligning their AML practices with FATF recommendations. There are also regulations from various jurisdictions to mitigate the risk of misuse of corporate structures for malicious use and ensure there is transparency in financial operations. United States, Canada, and the United Kingdom are enacting legislation motivated by the Global Magnitsky Act. This act is aimed at the abuse of human rights, corruption, and financial crimes and focuses on imposing harsh sanctions on humans or entities involved in such acts. There is also a greater emphasis on information sharing to detect malicious activities. There are initiatives like the EU’s Financial Intelligence Units (FIUs) platform and the United States Bank Secrecy Act (BSA) which encourage collaboration and intelligence sharing. A risk-based approach to AML practices is also emphasized. Banks and financial institutions must identify, identify, assess, and mitigate risks due to money laundering and terrorist financing. This will help them to allocate and implement controls based on the risk related to customers, products, services, and jurisdictions.
NICE Actimize’s response to industry challenges
- Innovations in AML software and solutions
NICE systems Ltd recently launched a new AI-based AML transaction monitoring innovation with multilayered analytics to better detect suspicious activity. The new solution ensures increased effectiveness for precise monitoring of both known and previously unknown, unmonitored typologies. The Suspicious Activity Monitoring (SAM-10) solution is built to detect more suspicious activity while reducing false positives, NICE systems Ltd SAM-10 introduces significant enhancements to its award-winning anti money laundering solution, incorporating multiple layers of defense which strengthen the others and offer comprehensive coverage and detection of suspicious activity, including website risk detection for financial institutions. This NICE monitoring system entity-centric AML engineering approach delivers data to enrich profiles and multiple layers to segment, monitor, and ensure that only true suspicious activity is identified. With financial investigation software such as SAM-10, suspicious activity can be intricately understood, accurately monitored, and detected more quickly. It also offers next-generation analytics, including machine learning for advanced anomaly detection, model optimization, and network risk analytics, detecting suspicious relationships and transaction patterns accurately.
- Collaboration with partners like Ness
The collaboration of NICE Actimize with partners such as Ness will help its customers with full implementation support and professional services capabilities. The partnership will also help NICE Actimize expand its market reach globally. The collaboration also helps clients to address today’s complex regulatory scenarios through end-to-end compliance solutions. By being an AML partner with NICE software, financial crime consulting firms can deliver AML financial crime solutions that will create significant efficiencies for banks and financial institutions.
Case studies and success stories
Ness offers experience, scale, customer-centricity and speed to provide defensive solutions as well as offensive measures to the problems. This has helped out clients to comply with regulations, avert suspicious activities, structure data, manage risks to ultimately grow revenues, increase operational efficiency and enhance brand reputation.
Ness has solved AML challenges for financial institutions. One such challenge was the need for financial institutions to issue credit or allow customers to open accounts after completing several due-diligence procedures to ensure that these institutions do not aid any money-laundering activities.
With its development & professional services partnership with NICE Actimize, the market leader in AML solutions, Ness has extensive experience in technical implementation, custom development, and fraud analytics. Ness offered a highly scalable AML solution supporting 15 million+ transactions per day and has deployed the solution in 7 of the top 10 banks in the world. Usually, the industry benchmark for such a solution is about 2-3% case-worthy alerts. However, the solution provided more than 15% case-worthy alerts that help identify business risks and safeguard against problems.