Anti-Money Laundering Services
The Japan Forensic Service Team applies its knowledge and global AML expertise to establish, implement, and strengthen comprehensive compliance programs to mitigate the risk of money laundering.
Risk and control services
We provide proactive and regulator-driven customer transactional analysis. Our service includes the identification of relevant transactions to meet Suspicious Activity Reporting (SAR) requirements and to assist in the development of defense strategies for criminal and civil investigations. Lessons learned from the transactional analyses are used to help in the modification and improvement of "business-as-usual" transaction monitoring protocols and management reporting.
We apply advanced analytics to a wide range of AML compliance challenges.
Our global AML practice includes:
Systems Integration – Installation of new Enterprise Fraud Management (EFM) platforms and customize configurations for use with existing systems and technologies
Systems Assessments – High-level assessments of system performance, including risk coverage and exposures, evaluation of scenario sets and rule performance, monitoring system gap analysis
Quantitative Model Assessment and Validation – Model validation (transaction monitoring, risk rating, or others); pre-exam inventory and assessment of models; establishing proper governance policies and procedures; creating protocols for sustainable model validation
Data Quality and Integrity – Assessment and analysis of data quality, completeness, and integrity; confirmation of data flows and accuracy of transformations that feed monitoring platforms; tests and tuning of data cleansing processes for names and geographies
System Adoption and Implementation – RFP and vendor selection assistance; selection of scenarios and calculation of initial thresholds; scenario deployment strategies; user acceptance testing; scenario syntax validation
Customer Segmentation and Customer Risk – Application of statistical techniques to create more responsive customer segments based on activity; customer risk classification models (following regulatory guidance and integrating customers’ demographic attributes transaction activity, and third-party information) to create individual risk scores
Transaction Monitoring and Tuning – Development of customized methodologies for tuning, including initial threshold setting and on-going tuning protocols; scenario retirement; calibration to customer behavior and creation of feedback mechanisms; analyses to distinguish between productive and non-productive alerts; statistical models to predict SAR likelihood
Case Management and Alert/Case Scoring – Creation of risk-based cases with probabilistic SAR likelihood scores to facilitate triage; application of alert combinations to prioritize cases and de-emphasize low probability cases; case management tool for broad case management or customized for narrow research applications
Merger/Integration/Due Diligence – Data testing and estimation of AML risks for potential acquisition targets; integration of monitoring platforms; analysis of pre-order and post-merger populations for tuning of monitoring models
Quantitative Institutional Risk Assessments – Creation of quantitative AML/Sanctions risk models; calibration of risk models to reflect customer behavior; agent risk models; integration of multiple risk models across compliance functions (e.g., AML, Sanctions, fraud and anti-corruption)
Case Study：Anti-Money Laundering
In recent years, modus operandi in money laundering has become diversified. After the Japanese Act on Prevention of Transfer of Criminal Proceeds was enacted, financial institutions and other businesses including real estate agencies and home delivery businesses are now required to conduct client identity verification (Know Your Customer; KYC) and Suspicious Activity Reporting (SAR) in their regular operations. Anti-Money Laundering (AML) has become a key challenge for various businesses and industries across countries and regions.
In March 2008 the Financial Action Task Force (FATF) conducted its mutual evaluation on Japan. The FATF report was issued in October 2008, and expressed its concern on Japan's lack of progress in addressing numerous and serious deficiencies in its AML framework. In response to the report, Japanese regulatory authorities have provided necessary laws and guidelines so both non-financial institutions and financial institutions are required to establish and periodically monitor their AML compliance programs.