Handling a backlog of transaction monitoring and customer screening reviews for a client experiencing rapid growth

A pioneering challenger bank (“the client”) approached Nexus AML to clear a backlog of client periodic reviews – the success and subsequent rapid growth of the bank meant that their compliance function was put under mounting pressure in a short period of time.

The rapidly expanding client base and associated pressure on compliance processes led the client to seek help from Nexus AML. The client needed Nexus AML’s expertise in reviewing accounts in line with regulations and in preparing their AML processes for the long-term increase in demand.

Challenge

The client’s primary focus was clearing a large backlog that had built up due to competitive offerings to new customers. This resulted in high demand above expectations and insufficient resources to satisfy the high demand. Consequently, the resource to review the existing customer base was reduced. The client had to ensure that all new accounts were onboarded efficiently and any flags for existing accounts were reviewed effectively and in line with AML regulations.

As with many new and existing product offerings, criminals are always looking to identify weaknesses in controls and exploit these weaknesses. Therefore, the client needed to quickly enhance their control framework and expand their Financial Crime function to protect against any weaknesses identified.

Initially the client requested a 6-week project. Due to the increasing demand for new accounts and Nexus AML’s success in assisting the client, this extended to 12 months.

Solution

Nexus AML provided support across the Financial Crime function including screening and transaction monitoring. The client had a predominantly automated system in place, so analysts were primarily dealing with system generated alerts which involved detailed reviews and comprehensive discounting rationale, something Nexus AML analysts are highly skilled at.

Once the initial backlogs were reduced, Nexus AML supported the client in undertaking periodic reviews of existing customers and high-risk individuals. In addition, in-house training and quality assurance were provided to support new and existing client employees. Feedback was also provided where appropriate.

Nexus AML analysts supported the client’s new starters, learning the ongoing screening and transaction monitoring workstreams, including supporting them with complete queries and quality assurance checking work to ensure correct decision making and the correct process was followed.

During the lifecycle of the project, Nexus AML analysts completed the following:

18,460

Transaction monitoring alerts

8,756

Onboarding and ongoing screening alerts

258

Periodic reviews

Outcome

Cleared the client backlog

and successfully supported

the client’s goal to reduce the

amount of time taken to

onboard and improve the

customer experience.

Consistently hit production

targets while maintaining the

highest level of quality.

Analyst efficiency and quality

increased week by week.

QA support; reviewing work

completed by new and existing

client employees and providing

feedback.

Process improvements

recommended and

implemented to improve

efficiency and quality.

Piloting new workstreams and supporting policy/process and procedures.