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Scenario Categories and Typologies

Updated over 12 months ago

Definition of Category and Typology

Category: Refers to the primary function or subunit within financial crime teams. This allows for better organisation and targeted analysis of alerts.

Typology: Denotes common financial crime patterns. Scenarios can be assigned typologies to highlight specific behaviour or activity patterns, aiding in more precise monitoring and reporting.

By implementing Categories and Typologies, scenarios can be better standardised, allowing for apples-to-apples comparisons and help to better compare the performance or better indicate overlap of similar controls.

Categories and Typologies can be assigned directly within the scenario view.

Categories and Their Typologies

Anti-Money Laundering (AML)

  • Description: Scenarios that identify and monitor potential money laundering activities.

  • Focus: Sophisticated patterns and scenarios beyond single-transaction monitoring.

  • Typologies:

    • High Value Transaction

    • High Risk Jurisdiction

    • Large Cash Transactions

    • Velocity

    • Dormancy

    • Payment Frequency

    • Counterparty Count

    • Early Repayment of Loan

    • Use of Virtual Assets

    • Unusual Business Activity

    • Structuring/Smurfing

    • Money Mule

    • Drug Trafficking

    • Human Trafficking

    • Terrorism Financing

    • High Value Assets

Fraud

  • Description: Scenarios detecting fraudulent activities.

  • Focus: Typically managed by dedicated fraud teams in larger organizations.

  • Typologies:

    • High Value Transaction

    • High Risk Jurisdiction

    • Velocity

    • Dormancy

    • Payment Frequency

    • Unusual Business Activity

    • Money Mule

    • App Fraud

    • Romance Scam

    • Account Takeover

    • Identity Theft

    • Investment Fraud

    • Card Fraud

    • New Account Fraud

Counter Terrorist Financing (CTF)

  • Description: Scenarios focusing on identifying terrorism financing.

  • Typologies:

    • Terrorism Financing

Know Your Customer (KYC)

  • Description: Patterns and alerts facilitating KYC processes during onboarding and ongoing customer relationships.

  • Focus: Customer verification and identification scenarios.

  • Typologies:

    • High Value Transaction

    • High Risk Jurisdiction

    • Large Cash Transactions

    • Use of Virtual Assets

Sanctions

  • Description: Scenarios related to implementing financial sanctions.

  • Focus: Screening against third-party and custom lists, stopping payments based on strict risk appetites.

Politically Exposed Persons (PEP)

  • Description: Scenarios monitoring persons and transactions involving individuals exposed to PEP/RCA risk.

Adverse Media Screening

  • Description: Scenarios identifying entities or individuals with negative media coverage.

Payment Operations

  • Description: Scenarios related to payment logic, operations, and data quality.

  • Focus: Issues like missing values, short (single) names, and exceeding account limits.

Complex Investigations

  • Description: Scenarios requiring in-depth investigation.

  • Focus: Aggregated data analysis for complex cases.

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