Introduction to Transaction Alert Manager

FCM Screen system enables you to filter cross border, domestic transactions and messages that are subjected to online compliance screening. It allows enables you to verify that the originator, beneficiary, intermediary, or narrative of a message is subject to one or more of the following criteria:

• Watch lists of individuals or entities to which sanctions apply.
• Payments made to and in countries listed on the Financial Action Task Force on Money Laundering’s Non-Compliant Countries or Territories list.
• Payments made to individuals or entities listed on the Office of Foreign Assets (OFAC) register.
• Any locally applied lists of individuals or entities.

The Message Evaluation tool provides the actual message and the source records of the corresponding watch lists that provoked the hit. The Transaction Alert Manager contains a web-based graphical interface to view the following:

• All messages that require evaluation.
• Details of the hits that were found in a message.
• Interdict Data relating to each hit found.

This feature allows you to perform the following activities:

• Evaluate the suspicious hit(s) found by the system.
• Provide comments on the investigation and evaluation of the risk.
• Propose skip entries to improve the system-automated evaluation process.
• View the evaluation and comments of other evaluators depending on individual authorization rights.
• Forward messages to senior evaluators and/or Compliance for further review based on the financial institution’s specific workflow rules.
• Automatically redirect messages based on the institution’s specific workflow rules.

Screen Process Flow in Transaction Alert Manager

The following chart shows the high-level process flow in FCM Screen and the Transaction Alert Manager.

After evaluation, if no valid hits are found, the message is returned for normal processing. If at least one valid Hit is found, the message is canceled.

The benefits of Transaction Alert Manager are as follows:

• Presentation of hits in full business context linked with the relevant watch list information.
• Efficient skip management.
• Potential for dramatic reduction in false detections.

Filter Types in Transaction Alert Manager

The filter types that are available in Transaction Alert Manager depends on system configuration and user rights. The filters are broadly classified into Compliance filters and Risk filters. Different user interfaces are available for each filter, to accommodate different requirements based on hit evaluation and organizational setup.

In the same transaction or message, there can be hits in the following filters. The message is released only when the hits in all affected filters are evaluated.

• Compliance Filter - Supports a financial institution’s obligation to detect messages and transactions that violate AML and CFT rules and regulations.
• Risk Filters - Supports a financial institution’s precautionary measures to protect it from operational risks in cases where transactions or messages relate to a bankrupt counterparty or exceed a given threshold. For example, USD 500 mil. The following are the examples of Risk filters.
  • Halt-of-Business-Messages (HOBM) filter
  • High Value Payments (HVP) filter
  NOTE: Risk filters are designed for Tier 1 banks as a last line of defence for operational risks. As the user interface of Risk filters is similar to the Compliance filter, all further information in this guide are applicable to both filter types of Transaction Alert Manager.

Highlighting Hit Matching Text

FCM Alert Manager highlights the hit matching text in Transaction Alert Manager. When a hit is viewed under the Alert Information tab, the text in the watchlist entry name, alias or permutation that matched against the payload text and generated hit is highlighted.

Integrating Alert Manager with Explainable Artificial Intelligence

This interim section explains how to integrate the Alert Manager with Explainable Artificial Intelligence (XAI) that is, enabling Automatic alert decision using XAI. This is phase -1 and it focuses on database migration only.