Anti-Money Laundering Transaction Monitoring

Risk Management solution fully automates and consolidates all sources of exposures in one single hub in real time allowing firms to be proactive in mitigating risks in a timely manner. Geared by business intelligence and a diverse set of data granularity, risk managers are empowered by various tools and metrics to analyze and process clients’ trading data in order to optimize their risk-adjusted returns based on Client Risk Profiling.

• Monitor your Net Open Exposures in real time in a consolidated manner across multiple trading platforms under unique underlying
• Seamlessly navigate through individual traders’ open positions, specific instrument or trading platform in real time
• Analyze traders performance historically including real time up to date unrealized Pnl
• Categorize and risk profile clients based on preset parameters
• Set Alerts for Trade Profitability thresholds on specific groups, traders, countries or MiFID categorization
• Avoid swap abusive behavior by automatically scanning your charged swaps internally between platforms and against the average market swap for your symbols

With the prudential framework in focus, investment firms across Europe and the UK are expected to follow the new regime in force as of June 2021 and January 2022 respectively. Regulation of the EU 2019/2033, “IFR”, alongside with the Directive EU 2019/2034, “IFD”, present new challenges to financial institutions as it involves a new approach of defining risk thresholds that will determine the relevant categories for classification and then the related reporting obligations.

While the regulation is expected to affect all investment firms, specifically the ones dealing with FX and CFDs that are licensed to perform investment services such as dealing on own account and reception and transmission of orders on behalf of clients or are licensed to hold clients’ funds, IFR and IFD introduce a new classification system for investment firms, based on their activities, systemic importance, size, and interconnectedness. The classification regime aims to enhance suitability in measuring and addressing specific risks inherent to each type of investment firm that may have not been appropriately captured under the previous Capital Requirement Regulation of 2013.

By using specific K-Factors, the new regime addresses the harm an investment firm can pose to customers (RTC), to market access (RTM) or to the firm itself (RTF). With this in mind, there is an ongoing obligation to calculate own funds requirements as set us in Article 9 and 10 of the IFR and make sure that existing own funds are at least the highest of the following:

• Fixed overhead requirements
• Permanent minimum requirement
• The K-Factor requirement

FINKIT solutions has specialized in streamlining the above and offers a product that allows firm to:

• Monitor in real time the own funds requirements to make sure they comply continuously
• Integrate the solution with any trading platform seamlessly and extract ready reports on RTC, RTM and RTF
• Perform zero calculations at their end and retrieve their K-Factors in real time and at end of day
• Optimize efficient capital allocation of the firm’s budget and meet reporting deadlines consistently and accurately
• Retain privacy and control over Data and capital adequacy reporting under IFR

Regulated Investment firms offering retail forex services, CFDs or Spread Bet products to retail clients have a substantial amount of clients thus a material amount of transactions to deal with. That said, regulators as well as credit institutions that offer banking services to Forex Brokers, ensure that there are systems and controls in place enabling firms to monitor money transactions from clients to fund their trading accounts.

With an ample amount and multiple sources of transactions, be those typical Card Transactions or alternative payments methods, sourced to different trading platforms offered by investment firms, it becomes vital to use sophisticated tools to consolidate transactions and swiftly spot any patterns raising red flags according to the Anti-Money Laundering manual relevant to each firm.

Reporting on suspicious transactions and suspicious activity is a mandatory requirement within the AML directive thus firms need to manage this AML risk efficiently and report in a timely manner to the regulatory authorities.

We have developed a fully integrated technology allowing firms to:

• Consolidate all money transactions sourced from different trading platforms, MT4, MT5 or other API platforms, in one single hub.
• Have full control over the institution’s AML risk in real customized by the Anti Money Laundering Compliance Office.
• Set Alerts customizable according to the firm’s AML risk profile.
• Receive notifications about breaches for the user’s attention to take action.
• Take advantage of audit trail assisting Compliance Officers to trace any suspicious transaction, investigate its source, document its resolution and eventually use the results in quarterly reports needed by the regulator or requested by Internal Auditor during inspection visits.

Quarterly and yearly regulatory reporting can be overwhelming tasks that consume your personnel’s time if done manually especially if you offer variety of products and derivatives to your clients. Servicing clientele from multiple countries of residence, with different categorizations and risk classification will only add more burden for analyzing data towards completing templates like CySEC QST, ICF, Portugal CMVM Xml or other regulatory forms. What if, you further have more than one trading platform in use, where a single client has multiple trading accounts across different trading platforms and in different account currencies?

Whether you provide us with an MT4 or MT5 API to fetch the relevant data on the fly or a separate database, using our Click to fill solutions allows you to:

• Complete accurately and consistently the required regulatory templates in a Click of a button
• Have ready forms for submission to the regulator on a consolidated basis across platforms
• Free up more time for your dealers and Backoffice personnel to deal with more urgent tasks
• Save time, money and avoid human errors when analyzing big and complex data
• Keep time spent on such regulatory reporting to the minimum

A fully automated exercise to safeguard clients’ funds and ensure a firm verifies, on a daily basis, that it has enough assets to cover its’ clients’ needs. This comes in handy with full integration with mt4, mt5 and C-Trader platforms where firms only monitor the results and correct for any discrepancies found.

Avoid doing any manual work, collection of statements or trading data and rest assured funds held at payment providers or banks are reconciled ongoingly while transactions being traced against agreed upon fees. This enables strict audit on your financial institutions’ accounts.

Clients’ Assets are fetched from trading platforms via APIs and a comprehensive view provides a summary of end of day clients‘ funds against firm’s holdings to provide a detailed reconciliation with recommended actions to ensure compliance with regulation.

The Common Reporting Standards (CRS) requires all financial institutions to annually report specific information about their reportable accounts to the relevant tax authorities where clients, beneficial owners, or controlling persons reside.

Our team has studied the compliance and technical requirements and put forward a solution that simplifies the reporting process by generating the necessary XML reports needed by tax authorities.

Upload the relevant data through our portal according to the specific template and generate your XML reports in seconds.

We also offer the possibility of fetching the complete set of data for you by integrating directly to your trading platforms via APIs; this saves a lot of time and increases accuracy in reporting.