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 | Reducing operational risk for compliance with Basel II |
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| > | Clients, products & business practices |
| > | Business disruption & system failures |
| > | Execution, delivery & process management
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| Compliance with privacy regulations such as GLBA & HIPAA (US) and the EU directive 95/46 (Europe) |
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| > | Privacy regulations such as HIPAA and GLBA in the US or the EU directive 95/46 in Europe require maintaining a detailed audit trail of user access to customer data.
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| Compliance with Sarbanes-Oxley |
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| > | Section 404 of the Sarbanes-Oxley Act requires that publicly traded companies in the US create and maintain effective internal controls for tracking financial processes. Intellinx rules can be used as controls in several areas required by SOX.
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| Compliance with anti-money-laundering regulations |
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| > | Intellinx can track customer behaviour patterns and transactions activity in online banking systems and messages sent via FIX, Swift and other protocols. Based on the recorded data Intellinx rules can generate alerts and reports required by AML regulations. Examples:
| - | Foreign currency purchase that exceeds the amount that require reporting |
| - | Consecutive transaction amounts just below the amount that requires reporting |
| - | Deposit followed shortly by withdrawals in high amounts |
| - | Many similar amount of deposits / withdrawals for the same account |
| - | Many transactions to the same target account in a month |
| - | New customer (individuals, entities, securities, countries) found in a watch list (OFAC, FATF, NCCT, PEP, etc.) |
| - | Change of address so two unrelated entities have the same address |
| - | Customer profiling - classify the account into different risk categories (high risk, low risk etc.) for the purpose of activity/ transaction monitoring. The transaction risk can be linked to the product, the industry or the geographical location. |
| - | Change in account activity compared to previous patterns with regard to number and amount of deposits, transfers and withdrawals
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| Trade Compliance Monitoring
Intellinx can track trader or customer behaviour when trading on markets for financial instruments, e.g. |
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| > | Equities trading surveillance
| - | Trading against a bank's restricted trading list or watch list or any other restricted list |
| - | Parking positions with another market participant to hide limit violations or to avoid margin calls |
| - | Placing proprietary orders before or alongside executing a large client order that is supposed to move the market price (Front-running / Trading alongside) |
| - | Intensive quoting that does not reflect actual business interest in order to influence the market price (spoofing) |
| - | Etc.
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| > | Fixed income trading surveillance
| - | Buying and selling the same stock in a short period of time without economic benefit (Wash trading) |
| - | Detecting un-normal high rates of cancellations or corrections of trades |
| - | Identify significant corrections that disadvantage the customer |
| - | Etc.
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