1. TRANSWATCH
An Overview

2. AGENDA
• Transwatch Overview
• Financial Crime Monitoring
• Application Modules
• Monitoring Flexibility
• Existing Customers

3. THOMSON REUTERS ACCELUS

4. THOMSON REUTERS GRC BUSINESS

5. TRANSWATCH OVERVIEW

6. GLOBAL SCREENING - TRANSWATCH
• Transwatch is a flexible,
transaction monitoring
solution designed to
identify suspicious
behaviour
• Provision of an end-to-
end solution for Know
Your Customer (KYC),
Financial Crime &
Market Abuse
monitoring

7. BENEFITS OF USING MONITORING TOOLS
• Regulatory obligation to monitor
• Monitoring as a business tool, not just a cost
– Often cheaper than manual monitoring, especially in the longer
term
• Monitoring consistency
– Maps onto your policies and procedures, maintains audits
• Basis for on-going dialogue with regulator
– Information exchange, supporting information and audit trails
• Ability & agility to adapt to changing regulatory
requirements
– React quickly & cost-effectively at a time of constant flux
• Ability & agility to adapt to changing business
requirements
– As your business changes and grows

8. TRANSACTION MONITORING - APPROACH
• Your monitoring/surveillance system should dovetail with
all aspects of your compliance policies & procedures
• There is no “one size fits all” approach – it varies:
– Characteristics of the business
• Retail bank, Corporate/Investment bank, Broker/Dealer, Fund Manager
• Size, Geographies, scope, strategies etc.
– Regulatory requirements
– Appetite for risk
• For some, electronic monitoring will be overkill

9. STRIKING THE BALANCE
• Are the monitoring scenarios appropriate for your
business?
– What are the rules actually doing?
– Do I understand why I have this alert?
– Can you exercise the necessary control to personalise them for
your requirements?
• Does the solution truly allow you to focus costly staff time
effectively?
• Is it cost-effective and sustainable?
• If not...
– You are likely to create extra work for no benefit

10. OVERVIEW OF NAME SCREENING MODULE
SCREENING MODULE – KEY BENEFITS
• SCREENS AGAINST WORLD-CHECK INTELLIGENCE
• SCREENS CUSTOMERS & CORPORATES AGAINST
-SANCTIONS -PEPs -LAW ENFORCEMENTS -REGULATORY ENFORCEMENTS
• INTUITIVE CASE MANAGEMENT & WORKFLOW
• PROTECTS CONFIDENTIAL DATA
• SECONDARY MATCHING – REDUCING FALSE POSITIVES
• HIGH VOLUME BATCH PROCESSING
• INTEGRATED REPORTING AND FULL AUDIT
• AUTOMATED & AD-HOC MANUAL SCREENING

11. WORLD CHECK INTELLIGENCE
KEY FEATURES
• 500+ SANCTIONS & WATCHLISTS MONITORED
• STRUCTURED DATA ON HEIGHTENED RISK INDIVIDUALS
AND ORGANISATIONS
• 11 RESEARCH CENTRES - 350 ANALYSTS GLOBALLY
• COMPLIANCE WITH KYC, AML & CFT LEGISLATION
• MONITOR BUSINESS RELATIONSHIPS
• IDENTIFY HIDDEN RISK WITHIN NETWORKS
• PEP MONITORING AND SUB-CLASSIFICATION

12. BENEFITS
• Increase effectiveness of your Compliance Team
– Focus human effort on key risk areas and incidents
– Reduce the effort required to handle each case
– Maintain the fullest possible scope of monitoring
– Extend monitoring as regulations or business requirements
change
• How? – flexible and configurable
– Streamlined data acquisition
– Rules-based exception identification
– Risk scoring of alerts and Cases
– Workflow-based Case management

13. RULES BASED EXCEPTION IDENTIFICATION
• Automated issue detection
• Rules are able to review all the necessary data, not just a
high risk subset of data
– Clients, accounts
– Transactions
• Rules as complex as necessary to identify the exceptions
– Extensible by you or us
• All rules are parameter driven
– You own and control the monitoring scope and thresholds etc.
• Manage high exception volume using White Lists

14. RISK SCORING OF ALERTS & CASES
• Keeps caseload focused and more manageable
• Only activity that exceeds your risk thresholds is
highlighted
– You set these thresholds
– You configure/load the risk profile parameters
• All rules exceptions are still recorded
– Ongoing effect on cumulative risk scoring by trader/customer
• Risk profiles built upon source data
– Clients, accounts, transactions etc.

15. CASE MANAGEMENT
• Workflow saves time in case processing and filing
– Enforce your business procedures
– Standardised report generation and submission
– Full audit trail of all activity
• Maintains the context of any investigation
– Makes the compliance officer’s life easier
– Investigator screens present key relevant information
– Reduces the time looking for and collating information

16. FINANCIAL CRIME MONITORING

17. EXAMPLE RULES
• Account Open Withdrawal
• Account Open Repeat Credits
• Large Transaction
• Large Cash Deposit
• Large Cash Withdrawal
• Large Cheque Deposit
• Large Cheque Withdrawal
• Large Inter-bank Payment
• Large Withdrawal Without Notice
• In Out
• Dormant Account
• Repeat Cash Deposits
• Repeat Cash Withdrawals
• Repeat Cheque Deposits
• Repeat Cheque Withdrawals
• Repeat Large Withdrawals Without
Notice
• Commission
• Reporting Avoidance
• Remote Branch
• Smurf Investor
• Overpay Security
• Fake venture
• Early Redemption / Capital
Repayments
• Penalty Interest
• To/From High Risk Geography
• High Risk Nationality/Residency
• High Risk Products
• High Risk Currencies
• Blocked Currencies
• Country Currency Combination
• Blocked Account / Watched Account
• Sanctioned Customer
• Account Value / Volume / Velocity
• Maximum Transaction
• Maximum Balance
• Maximum Turnover
• Maximum Velocity
• Predicted Value / Volume / Velocity
• Unknown Customer
• Address Change
• Low Balance Cheque Receipt
• Consecutive ATM Withdrawals
• Debit Card Behaviour
• Same Teller
• Nominated Account Changes
• Youth Account / Tax Exempt

18. MONITORING FLEXIBILITY

19. RULE PARAMETERS
• Numeric parameters can be dimensioned
– e.g. a large cash deposit rule may have a different AMOUNT
threshold based upon the combination of the account type and the
customer type
Customer Type Parameter
Mass Market €4000
High Net Worth €12000
Small Business €20000
Counterparty €0
Customer Type Current A/C Deposit A/C Mortgage
Mass Market €4000 €2000 €1000
High Net Worth €12000 €10000 €2000
Small Business €20000 €15000 €0
Counterparty €0 €0 €0

20. RISK SCORING
• You decide how to score, based upon your experience of
your business
• You can apply a risk score to any of the following source
data
– Client
– Account
– Transaction
• Risk scores can either be supplied Transwatch

21. Credit Status Score
(1-5)
EXCELLENT 1
GOOD 2
FAIR 3
POOR 4
VERY POOR 5
default or blank 3
RISK SCORING – FINANCIAL CRIME EXAMPLE
Column Customer A Score Customer B Score Customer C Score Customer D Score
credit status GOOD 2 FAIR 3 3 VERY POOR 5
occupation TEACHER 1.2 DIPLOMAT 5 LAWYER 3.5 2
customer segment MASS 3 HNW 5 MASS 3 UNEMP 4
country of residency US 1 NG 5 RU 4 US 1
Total Score 9 84 59 21
Occupation Score
(1-5)
ADMINISTRATOR 1.5
TEACHER 1.2
BROKER 4
LAWYER 3.5
DIPLOMAT 5
default or blank 2
Customer
Segment
Score
(1-5)
OAP 1.5
CHILD 1
MASS 3
UNEMP 4
HNW 5
default or blank 3
Country of
Residency
Score
(1-5)
US 1
RU 4
UK 3
AF 4
NG 5
default or blank 3

22. RISK SCORING

23. ANALYSER - EXCEPTIONS

24. APPROVED LISTS
• Customers and Accounts can be approved (white listed)
– For all rules
– Specific rules
• The Customer Notebook & Account Notebook display
details of black list and white list entries
– Users can easily add/change/delete these directly within
Investigator Notebook – in real time

25. EXISTING CUSTOMERS

26. ACCELUS TRANSWATCH - SOME REFERENCES

27. SUMMARY

28. TRANSWATCH SUMMARY
• Saves time and increases effectiveness
– Focuses human effort on key risk areas and incidents
• Rules-driven, Risk Based
– Reduces the effort required to handle each case
• Workflow, tracking and audit
• Approved standard Financial Report generation
• Transwatch Platform
– Financial Regulator proven
– In use Worldwide
– Available on cost-effective, industry standard platforms

29. THANK YOU
Questions?