Approach and Benefits
Approach
Financial Intelligence Units (FIUs) play a significant role in national AML/CFT operational networks, and provide support to the work of other competent authorities. FIUs also have a key role in the global fight against money laundering, the financing of terrorism, and related crime. Robust IT systems at the FIU are critical to its ability to transform data into financial intelligence. An FIU cannot perform its functions (timely access to information; searching of databases for analysis or making inquiries on behalf of foreign counterparts; and preparing trend analysis reports) effectively without the use of IT system.
FIU Information System Maturity Model (FISMM), developed by the Egmont Group of FIUs, is a comprehensive framework to enable FIUs of varied sizes and contexts to assess the maturity level of their processes and IT systems. FISMM describes the stages (through 15 domains, FD01-FD15) through which processes progress as they are defined, implemented, and improved. This framework also assists in strategy formulation, performance management, process improvement, and technology evaluation in an FIU’s environment.
Five types of FIUs (in terms of FIUs of sizes and contexts) have been identified:
- Small FIUs in fragile countries
- Small FIUs in stable countries
- Average FIUs
- Big Data FIUs
- FIUs supporting a distributed user community or distributed financial institutions
goAML SE/EE and other goPortfolio software products such as goINTEL supports various domains of FISMM (FD01-FD13), at least the second or third category of FIUs. To satisfy the technical infrastructure management domain or IT strategic alignment (FD14) and the information security management domain (FD15), SPMS proposes an End-to-End Process (2EP).
The 2EP is the enterprise architecture framework for FIUs and takes into consideration FATF’s 40 recommendations, the 4th EU AML directive, and Egmont Group principles. The 2EP consists of four domains namely, a) AML/CFT business architecture, b) data architecture between Reporting entities, the FIU and other national/regional/international stakeholders, c) application architecture (goAML/goPortfolio), and d) infrastructure (technology) architecture including information security.
Future Innovations
The scope of this goAML/goPortfolio strategic roadmap includes the design and development of goAML Architectures, innovations around goAML, training models and associated documentations. Its outcomes will consider the three phases of money laundering and will extend to national law enforcement agencies, regional and international entities that are fighting financial crime based on evolving compliance standards for anti-money laundering and combatting the financing of terrorist activities.
The five broad categorizations of goAML architectures, with their respective benchmark performance indicators/requirements, are as follows:
- goAML in the box for small FIUs in fragile states;
- goAML SE for small FIUs in stable countries;
- goAML SE - goINTEL for average FIUs;
- goAML EE for big data FIUs; and
- goAML D for FIUs with distributed user community and/or distributed financial institutions (with commercial/financial free zones)
goAML architectures consist of six domains: business architecture, data architecture, application architecture, infrastructure (technology) architecture, security architecture, and beta testing architecture.
The development of future innovations will strive to involve, if technically and scientifically relevant, important applications of artificial intelligence (AI), geographic information system (GIS), machine and deep learning and big data and data analytics, and how financial technologies may improve transaction monitoring.
Future innovations will also cover virtual currencies (VCs) or cryptocurrencies (CCs) transactions. VC/CC payment products and services present money laundering and terrorist financing (ML/TF) risks and other crime risks that must be identified and mitigated, and are also identified with their use in crimes, illegal activities and speculation on the Dark/Deep Web. In fact, the Dark/Deep Web increasingly used to conduct illegal activities. Recruitment by terrorist organizations, drug smuggling, gun running, the sale of blood diamonds, illegal and banned substances, piracy, cybercrime money laundering, human trafficking, etc., are all easily accessible and readily available on the Dark/Deep Web.
Benefits
goAML and goPortfolio software products:
- Help countries meet international standards by establishing effective Financial Intelligence Units (FIUs)
- Provide a uniform and standard global anti-money laundering platform
- Are designed as a modular system to fit the needs of any type of FIU
- Reduce the learning curve for new users with its standard graphical user interface on all screens
- Supported by a growing user community (UC)
- Benefits from strategic partnerships with many international and regional institutions