| Wall Street’s back office launches market-leading AML software from Norkom | | Print | |
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Norkom Technologies, a leading provider of financial crime and compliance software, announced today that The Depository Trust & Clearing Corporation (DTCC), the world’s largest post-trade infrastructure organization, has successfully deployed its software as part of DTCC’s program against financial crimes and money laundering.
DTCC, which in 2005, settled trades totaling $1.4 quadrillion for the world’s most well-known financial services institutions, is bringing an added layer of vigilance to back-office processing on Wall Street by using Norkom’s specialized software to move towards monitoring over 50 million U.S. domestic, fixed income and equity trades every day, building a complete profile of every customer in its business based on historical trading patterns.
The software monitors trades, automatically issuing alerts to the DTCC’s investigations and compliance team when it identifies suspicious transactions that fall outside of normal parameters.
Sal Matera, DTCC Vice President, Information Services, explained, “We will use Norkom’s advanced profiling capability to determine usual trading behavior for each customer. Because of the sheer volume of trades passing through our system, time is of the essence. The Norkom solution is scalable and able to support a large number of transactions, on a national and international basis, and coupled with its strong Case Management capabilities can support the rigorous risk-based approach our regulators increasingly demand.”
Each Norkom alert is prioritized based on the risk and is pre-populated with all of the information needed to drive the investigatory process, so investigations will be fast, thorough and cost-effective. This enables DTCC to comply with regulations in a manner that is sustainable to its business. As part of its Anti-Money Laundering (AML) strategy, DTCC will allocate risk profiles to new and existing customers based on a number of factors, including an assessment of their AML processes and controls.
“The risk profile allocated to each customer will determine the level of scrutiny applied by the technology when monitoring and investigating their transactions,” Matera said.
DTCC supports over 2,500 customers in its core clearance and settlement business, including 250 full-service major financial firms. The total DTCC customer base is even greater, when you include other rapidly growing business areas both domestic and global.
Joe Friscia, GM of Norkom NA, said DTCC’s decision to deploy Norkom was based in part on the company’s risk-based approach, including its software analytical and rich case management capabilities. “The cost of keeping pace with regulatory demands and criminal cunning is growing exponentially,” Friscia said. “This cost can only be managed when technology is used to identify areas of greatest risk, so that investigatory scrutiny and resource can be focused in those areas. “With its enormous trading volumes, DTCC faced a unique challenge. Norkom is very pleased to partner with DTCC on its AML strategy.”
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