HNC RISK MANAGER FOR MONEY LAUNDERING ENHANCED TO MONITOR AND FILTER CORRESPONDENT BANK AND BANKING STAFF ACTIVITIES REQUIRED BY THE U.S. PATRIOT ACT

HNC Risk Manager for Money Laundering Enhanced to Monitor and Filter Correspondence Bank and Banking Staff Activities Required by the U.S. PATRIOT Act


Sophisticated System Analyzes Data to Identify Collusion or Need for Increased Detection Training

HNC Software Inc., a leading provider of high-end analytics and decision management software and tools, today announced it has enhanced the functionality of HNC Risk Manager for Money Laundering to include the monitoring and filtering of correspondent banking activities and bank employee actions.

By using the software to identify correspondent banks whose transactional and account activities (such as identification of account beneficiaries) vary significantly from that of other correspondent banks, organizations can focus their investigative resources on those banks most likely to have suspect or fraudulent dealings - helping ensure their reputation remains untarnished from money laundering association.

In addition, the highly flexible Risk Manager for Money Laundering technology can assist compliance administrators in managing "know-your-employee" regulatory requirements, including the ability to help identify employee training needs. The updated system allows financial institutions to compare key statistics by employee or branch to identify possible money laundering collusion. It also can help identify the need for increased training of employees who fall short of the money laundering detection and investigative skills and reporting practices required by law.

Although estimates regarding the size of the money laundering industry vary, experts agree that the market size is significant. For example, the International Monetary Fund estimates money laundering ranges from 2 to 5 percent of the world's gross domestic product. Estimates by the Financial Action Task Force on Money Laundering (FATF) place money laundering activities between $590 billion and $1.5 trillion.

"Regulations surrounding monitoring and filtering correspondent banking activities and 'know your employees' have been tightened through recent anti-money laundering legislation, particularly in North America and Europe," explained Walter Lee, vice president of risk products at HNC. "Utilizing HNC Risk Manager for Money Laundering helps an institution's ability to comply with evolving regulatory and compliance requirements."

Since Sept. 11, 2001, U.S. government officials have passed numerous legislative acts to help prevent terrorist funds from flowing through financial organizations. The USA Patriot Act (Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism), which passed into law in October 2001, provides a number of new anti-money laundering provisions required by financial institutions in identifying funds gained through illicit means. The Patriot Act also raises the maximum penalties for violations of the regulations from $100,000 to $1 million.

"It is becoming increasingly difficult for financial organizations to maintain compliance with the myriad of anti-money laundering regulations being passed," Lee noted. "The transaction patterns inherent in terrorism funding may not conform to common money laundering patterns and techniques - creating a greater challenge for organizations to identify and report these transactions. That's why it's crucial that organizations use a highly flexible, automated and sophisticated system such as HNC's Risk Manager for Money Laundering."

About HNC Software Inc.
HNC is a leading provider of high-end analytic and decision management software and tools that enable global companies to manage customer interactions by converting data and business experiences into real-time recommendations. HNC's proven software empowers Global 2000 companies in the financial services, insurance, telecommunications, health care, and other industries and governments to make millions of the right mission-critical customer decisions, and take action in real time, substantially improving financial performance, reducing costs and decreasing risk. For more information, visit www.hnc.com.

First published on BankersOnline.com 3/15/02