We are proud to announce that FCG and Ferrologic are co-operating in developing the next generation Anti Money Laundering (AML)/Counter Terrorist Financing (CTF) system, designing a solution based on next generation components while also meeting the market demand for a holistic solution, and removing the fragmentation that exists in current available solutions. We had a chat with Henrik Nilsson, Partner and Team Manager at FCG and Per Grosskopf, CEO Ferrologic Analytics, to find out more about the project:
Tell us more about this initiative?
Henrik Nilsson, FCG: – One conclusion when discussing the infrastructure with regards to AML/CTF capacity is that most implementations today are either too fragmented or based on old, non-transparent, technology. They also lack the required flexibility to keep pace with external expectations on enhanced management of financial crime risks and the new and frequently updated regulations. Having previously co-operated with Ferrologic and their highly skilled IT-architects, we reached out to Per and his staff to discuss how our combined capabilities can provide something stronger and more flexible compared to what is offered today. There is no doubt that by combining FCG’s and Ferrologic’s skills, our clients will be offered a robust and solid system solution, implemented by highly skilled market professionals, both in terms of daily operation as well as from an IT perspective.
Per Grosskopf, Ferrologic: – From our point of view we offer the architectural design, but we also need the expertise that FCG’s AML/CTF practitioners can offer to set up a relevant and efficient process flow. Early on in the dialogue, the high ambition became clear, and where we agreed to the three main characteristics for the solution that FCG wants to set as standard.
Firstly, the core capability, where the organisations shall be provided with a one-stop-shop solution for counteracting ML and TF. Secondly, the flexibility of the system so that it may cater to small and local firms, as well as larger institutions with active needs to integrate the solution cross-border. Thirdly, ensuring a relatively low hurdle for implementation.
HN: The first standard of course relates to the whole initiative, targeting the primary concern amongst practitioners in the industry. That is, the fragmented nature of the current solutions for handling and storing KYC data, risk classification of customers, monitoring of customers behavior and transactions and last but not least, tools to enable analysis, internal and external reporting and effective risk management. In dialogue with Ferrologic, the flexibility requirement is, somewhat paradoxically, perhaps the easiest one to handle. The last generation components in terms of integration tools, data visualization, case management systems etc., all support this characteristic. This is important, not only from a functional perspective, but of course also from a cost perspective for the various size and complexity of the institutional end-users.
PG: The main challenge is not to assemble the solution, but to enable a smooth transition. We have already received feedback in our dialogue with the industry on how this is to be achieved. In the collaboration between FCG and Ferrologic experts, this is a critical component of the offering to get right since the cost of implementation will be the main driver in the decision process for the potential clients.
What is the next step?
HN: From FCG’s perspective, we will continue the dialogue with our clients to ensure that we cover all aspects they expect from a next generation AML/CTF-system, and relaying the information to Ferrologic for integration into a potential implementation plan.
PG: As Henrik says, our focus will be to listen to the requirements coming to us, but also to initiate dialogue with IT departments to ensure that the implementation plan also covers their perspective.
Feel free to contact Henrik Nilsson or Per Grosskopf for further information, or if you want to participate in setting the requirements for the next generation AML/CTF capability. Contact Chief Marketing Officer Olof Rosvall for media enquiries.