Swift has extended its Compliance Services portfolio with the addition of Compliance Analytics, a business intelligence tool that aggregates Swift network data to help banks visualise their global transaction flows and identify any unexpected activities. Swift touched on the analytics tool back in January when it discussed its intention to build a portfolio of compliance services for financial crime regulation and began the pilot of a Know Your Customer data utility, KYC Registry, that is due to go live late this year.
Compliance Analytics is a web-based visualisation tool that allows banks to access and analyse their own Swift traffic data with a view to spotting anomalies in activities. Banks can also view aggregated traffic data from across the Swift network to provide a comparative view and can set up triggers to receive notifications if specific events occur in their own traffic data. With over 10 years of traffic data stored by Swift and made accessible through the Compliance Analytics solution, banks can also see more sophisticated activity, such as which partners were involved in particular transactions and the countries, currencies and types of the transactions. They can also define expected patterns of behaviour of correspondents and identify any unusual behaviour.
Luc Meurant, head of banking markets and compliance services at Swift, explains: “There are increasingly high expectations for financial institutions to implement policies and tools that will help identify and prevent financial crime activities. Our customers were finding it difficult to get a comprehensive view of all their international activities over the Swift network as it is hard to reconcile so much information from different systems and gather it all together. In response to this, we developed Compliance Analytics to make the data available and easy to access. Banks also lack data on wider market activity, so we have also made this available. The aim of Compliance Analytics is to help banks identify incidents that might be of concern from a financial crime point of view.”
Swift is nearing the end of a pilot project on Compliance Analytics and expects the solution to be widely available in June. It will be priced between €100,000 and €300,000 a year depending on data volumes, a cost described by Swift as a fraction of that which banks would have to bare to achieve a similar solution in house.
Looking forward, Meurant outlined further forthcoming additions to the Compliance Services portfolio including a service to help banks manage sanctions lists and a testing solution to assure the effectiveness of anti-money laundering systems.