The Advantages of Tookitaki’s End-to-end AML Compliance Solution for Singaporean Financial Institutions

As a significant global financial hub, Singapore is inevitably exposed to the risk of being exploited as a conduit for money laundering activities. Given its high-volume financial transactions, it becomes an attractive target for illicit fund flows, making money laundering a pressing issue. The Monetary Authority of Singapore (MAS) has been consistently working to strengthen its AML/CFT regime to deter these unlawful activities and protect the integrity of its financial system.

Tookitaki has introduced its end-to-end Anti-Money Laundering (AML) compliance solution to aid financial institutions in battling this menace. This innovative solution is designed to provide an effective, efficient, and scalable approach to identifying, tracking, and mitigating money laundering risks. By leveraging advanced technologies such as machine learning and artificial intelligence,

Tookitaki's AML compliance solution not only enhances the detection of suspicious activities but also improves operational efficiencies, making it a compelling choice for financial institutions striving to maintain regulatory compliance and uphold their reputation.

Overview of AML Compliance in Singapore

Regulatory Landscape for Financial Institutions in Singapore

The Monetary Authority of Singapore (MAS), as the country's central bank and financial regulatory authority, sets the AML regulatory framework. This framework has been designed to be in line with international standards, including those set by the Financial Action Task Force (FATF). The MAS Act, the Terrorism (Suppression of Financing) Act, and the Corruption, Drug Trafficking, and Other Serious Crimes (Confiscation of Benefits) Act are among the main laws governing AML activities in the city-state. These laws impose specific obligations on financial institutions, such as performing customer due diligence, submitting suspicious transaction reports, and maintaining records.

Challenges faced by Singaporean Financial Institutions in AML Compliance

Despite the robust regulatory landscape, Singaporean financial institutions confront several obstacles in maintaining AML compliance. Traditional rule-based AML systems often generate a high number of false positives, leading to inefficient use of resources and increased operational costs. These systems may also struggle to detect complex money laundering patterns, leaving institutions vulnerable to financial crime.

Moreover, as financial criminals constantly evolve their methods, keeping up with changing money laundering techniques is a formidable challenge. The proliferation of digital transactions and cryptocurrencies has further complicated the situation, as these channels can be used to mask illicit fund flows. Consequently, financial institutions face constant pressure to improve their AML strategies to detect and deter money laundering activities effectively.

Tookitaki’s End-to-End AML Compliance Solution

Tookitaki is a global leader in financial crime prevention, dedicated to building a safer and more secure world through innovative technology, strategic collaboration, and a distinctive community-based approach. Since our inception in 2015, we have been on a mission to transform the battle against financial crime by dismantling siloed AML approaches and uniting the community through our groundbreaking Anti-Money Laundering (AML) Suite and Anti-Financial Crime (AFC) Ecosystem.

Our AMLS is an end-to-end operating system that modernises compliance processes for banks and fintechs, providing comprehensive risk coverage, enhanced detection accuracy, and a significant reduction in false alerts. The AFC Ecosystem, on the other hand, is a community of experts dedicated to uncovering hidden money trails that traditional methods cannot detect. Powered by federated machine learning, the AMLS collaborates with the AFC Ecosystem to ensure that financial institutions stay ahead of the curve in their AML programs.

About the AFC Ecosystem

Our AFC Ecosystem is a community-based platform that facilitates the sharing of information and best practices in the battle against financial crime. Powering this ecosystem is our Typology Repository, a living database of money laundering techniques and schemes. This repository is enriched by the collective experiences and knowledge of financial institutions, regulatory bodies, and risk consultants worldwide, encompassing a broad range of typologies from traditional methods to emerging trends.

The Tookitaki AFC Ecosystem consists of two main components: the AFC Network - a global network of subject matter experts who contribute the latest typologies, and the Typology Repository - the largest federated database of money laundering patterns, contributed and validated by experts.

The Typology Repository is an exhaustive, ready-to-use database, from which typologies can be searched and integrated into AMLS with a single click. The database operates solely on patterns and does not store any data, ensuring full privacy protection. Using a user-friendly interface, members of the network can easily create and share their typologies with each other, without compromising any customer information.

About the AML Suite

Our groundbreaking AML Suite is an end-to-end operating system that modernises compliance processes for banks and fintechs. The solution is redefining the way the financial service industry thinks about and approaches AML compliance. It is an award-winning, self-adaptive machine learning solution that helps FIs to build a comprehensive risk-based anti-money laundering compliance program. It is an enterprise-wide solution built around three core modules: screening, risk scoring and transaction monitoring.

The AMLS platform has a modular design and consists of the following modules.

• Smart Screening solutions
  • Prospect Screening
  • Name Screening
  • Transaction Screening
• Dynamic Risk Scoring
  • Prospect Risk Scoring
  • Customer Risk Scoring
• Transaction Monitoring
• Case Manager

Advantages of Tookitaki’s End-to-End AML Compliance Solution

Efficiency in Identifying Suspicious Transactions

Tookitaki's AML solution significantly enhances the efficiency of detecting suspicious transactions. With its machine learning algorithms, the solution can identify complex patterns and anomalies that traditional rule-based systems might otherwise miss. It can learn from past transactions, making it adept at detecting evolving money laundering techniques.

Reduction in False Positives and Improved Accuracy

One of the significant challenges faced by traditional AML systems is the high number of false positives, which leads to unnecessary workload and resource allocation. Tookitaki's solution, by contrast, significantly reduces false positives, leading to improved operational efficiency and accuracy. Its machine learning models can distinguish between normal and suspicious activity more effectively, leading to fewer false alerts and more accurate detection of potential illicit activities.

Enhanced Regulatory Compliance and Risk Management

Tookitaki's end-to-end AML solution goes beyond transaction monitoring and incorporates customer due diligence, risk scoring, and case management. This comprehensive approach ensures that all aspects of AML compliance are addressed, reducing the risk of non-compliance with regulatory requirements. The solution's ability to adapt to changing patterns and techniques of money laundering aids in proactive risk management, thus ensuring that financial institutions stay ahead of regulatory changes and emerging money laundering threats.

Case Study: Deploying AML Suite for Streamlined Transaction Monitoring in a Next-Gen Digital Bank, Singapore

The Challenge

Launching a next-gen digital bank in Singapore was met with a significant roadblock - timely compliance with the Monetary Authority of Singapore's (MAS) regulations, specifically Anti-Money Laundering (AML) requirements. The task entailed speedy onboarding of new transaction monitoring scenarios and adapting to the ever-changing regulatory landscape and AML patterns.

The Solution

Took a proactive approach by deploying Tookitaki's Anti-Money Laundering Suite (AMLS) for Transaction Monitoring. This platform enabled building a robust transaction monitoring solution tailored to the bank's needs.

The AMLS was set up to monitor more than 20 typologies, including but not limited to Current Account Savings Account (CASA), lending, payment, and Small and Medium-sized Enterprise (SME) banking. A crucial aspect of the solution was the provision of a streamlined system for investigation and reporting.

The Results

The AMLS Transaction Monitoring platform deployment resulted in comprehensive risk coverage, ensuring 100% compliance with MAS's AML requirements.

The new system proved to be extremely efficient, reducing the time to onboard new scenarios by approximately 50%. Moreover, the centralization of case management facilitated faster and more effective investigations, providing an all-around solution to the bank's initial challenges.

Final Reflections and Next Steps

Tookitaki's end-to-end AML compliance solution offers unparalleled benefits to Singaporean financial institutions. With its focus on reducing false positives, increasing accuracy in identifying suspicious transactions, and offering enhanced compliance with regulatory norms, the solution presents an efficient and effective approach to risk management. Furthermore, with the ability to tailor its services to the specific needs of the institutions, Tookitaki stands as a potent tool in the fight against money laundering and other forms of financial crime.

The battle against money laundering requires advanced tools and an innovative approach. We invite you to experience the revolutionary capabilities of Tookitaki's AML solutions firsthand. Do not miss this opportunity to explore how Tookitaki can enhance your AML compliance processes and contribute to a safer financial environment. Book a demo today and discover how Tookitaki can revolutionize your approach to AML compliance.