Dec 6, 2023

Perpetual KYC: How to identify sources and destinations of funds

November 24, 2023

How can proper tools make transaction analysis more efficient and effective? This article explores how to visualise and analyse transaction- and customer data in Convier.

Perpetual KYC: How to identify sources and destinations of funds

Transaction analysis is an important step of periodic customer reviews for banks. The goal of the exercise is to detect when a customer is engaging in illegal activities such as fraud, money laundering or terror financing. The current process for doing this analysis is mostly manual, making it highly variable and usually inefficient. Lack of proper analysis tools also makes it difficult to see more complex patterns across financial institutions, accounts and sometimes countries.

The right transaction analysis tool will let the user

  1. Gather and merge data from multiple sources to augment the information found in the transaction monitoring system
  1. Visualise that data in a way that makes it easy to detect patterns and anomalies in the transaction behavior
  1. Convey their insights and conclusions to colleagues and decision makers

Let’s take a look at how a transaction analysis could be done in Convier.

Example of a customer view in Convier meshing together data from the bank's customer registry, transaction monitoring system, core bank system and external API sources.

With Convier installed, all relevant data is available at the user’s fingertips. Data from multiple sources is woven together to create a single, enriched view of everything that can be known about the customer.  

Transaction flow
A transaction flow diagram revealing a complex transaction structure

The investigator can from there choose to dig even deeper, exploring how the flow of money moves from one place to another. The flow app clearly visualizes how money moves between a network of accounts, and helps the user uncover suspicious patterns. In the picture above, we can for instance see that Norway Shoes AS are transferring money to Acme Inc and Flores Chance, who in turn sends money to Arwin Wulff. When this data is combined with information about key stakeholders in Norway Shoes, it becomes clear that this case should be investigated more closely.

A graph showing counterparts with roles related to a customer

Discovering this complex behavior would have been significantly harder without the help of a good visualisation tool like the Flow app.

Lastly, the conclusions of the analysis can be summarised and shared with relevant stakeholders – or even be automatically saved to the bank’s existing case management system. The platform ensures a complete audit trail of the data basis and the investigation process that led to the final resolution of the case in question.

A proper investigation tool can significantly speed up the case handling process, increase the quality of the investigations and help facilitate collaboration and consistency in workflows across an organisation.

To see a practical example of how to configure your project for transaction analysis in Convier, take a look at this video:

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Kaja Kvello
Product Manager

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