Tag anti money laundering

Rahn Monitor is the most Affordable AML Tool in South Africa

In today’s fast-paced and increasingly regulated business environment, ensuring compliance with anti-money laundering (AML) legislation is more critical than ever. For businesses in South Africa and indeed around the globe, RAHN Monitor stands out as the best and most affordable AML tool available. Designed with cutting-edge technology and a deep understanding of the local and international regulatory landscapes, RAHN Monitor offers a comprehensive solution that addresses all your compliance needs effectively.

Comprehensive Sanctions and Adverse Media Screening

RAHN Monitor is your one-stop solution for sanctions and adverse media screening. The platform’s extensive global sanctions database of up to 200 lists is continuously updated, ensuring that you always have access to the most current information. This helps you manage and track compliance risks efficiently, minimizing the chances of engaging with high-risk individuals or entities.

The Adverse Media feature is another powerful tool integrated into the RAHN Monitor platform. It allows for additional searches on individuals and entities, linked to over 2,000 global news sources. This ensures that you have a comprehensive view of potential risks, far beyond what traditional AML tools offer.

Advanced artificial intelligence capabilities

RAHN Monitor is equipped with advanced artificial intelligence (AI) capabilities that significantly streamline your compliance processes. One of the standout features is MonitorGPT, an AI-driven tool that enhances sanctions searches by scouring the internet for adverse news and information related to your search. It then drafts a summary of the findings, providing links to related articles. This ensures you have a thorough and precise understanding of potential risks, making your due diligence efforts more efficient and effective.

Simplified AML processes with batch scanning and case management

Managing large volumes of data is a breeze with RAHN Monitor’s Batch Scan feature. This allows you to upload a standard CSV file with your client data and scan multiple clients in one session. The system processes the data in the background and notifies you once the scans are complete. This feature is particularly useful for businesses with large customer bases, ensuring that no detail is overlooked in your compliance efforts.

The platform also includes robust case management functionality, enabling you to effectively manage positive alerts. This feature provides tools to review, investigate, and resolve cases where alerts may not indicate actual risk, thereby streamlining your compliance workflow and ensuring that true issues are addressed promptly.

Customisable Solutions with API Capabilities and a Personal Database

RAHN Monitor offers robust API capabilities for seamless, real-time integration with your existing systems. Whether it’s Customer Relationship Management (CRM) systems, Enterprise Resource Planning (ERP) systems, or Compliance Management Systems, RAHN Monitor can integrate effortlessly, enhancing your operational efficiency and ensuring that compliance processes are embedded into your workflow.

Moreover, the platform allows you to create a personalized “do not do business” list tailored to your company’s specific requirements. This Custom Database feature ensures that individuals or entities on this list are excluded from onboarding or servicing processes, just as if they were sanctioned individuals.

Affordable and Flexible Pricing

One of the standout features of RAHN Monitor is that its the Most Affordable AML tool. Developed in South Africa, the platform offers effective pricing structures that provide exceptional value for money, starting with as little as R2,80 (15 cents converted to dollars) per screening against the 200 world-wide sanctions list.  Whether you are a small business or a large enterprise, RAHN Monitor’s flexible payment options, including pay-as-you-go and monthly invoicing, ensure that you only pay for what you need. This tailored approach to payment makes RAHN Monitor accessible to businesses of all sizes.

RAHN Monitor is more than just an AML tool—it’s a comprehensive solution designed to meet the complex needs of businesses in South Africa and around the world. With its advanced AI capabilities, extensive database, robust case management features, and affordable pricing, RAHN Monitor stands out as the best and most cost-effective AML tool available. Whether you need to comply with local AML legislation or ensure that your global operations are above board, RAHN Monitor has you covered.

For more information or to book a demo, visit RAHN Monitor and discover how this simple but sophisticated platform can transform your compliance processes.

Rahn Consolidated’s articles and case studies are aimed at socialising, climatising, creating awareness, and cautioning economic participants regarding economic crime schemes. The focus will be on anti-money laundering and the investigations around economic crime scheme risks, reporting, and most importantly, its regulatory compliance. The term “Economic crime schemes” is often used interchangeably with “Financial Crime”.

In June 2021, the Financial Actions Task Force (FATF) highlighted deficiencies in South Africa’s AML/CFTPF regime. The report issued by the FATF, lists a set of “priority actions”. That government‘s required to take before October 2022.

ISSUE NO.20-2022, focuses on South Africa’s requirement to report on the progress made in the FATF plenary in October 2022. If FATF deems the progress to be insufficient. It will be decided on whether South Africa should be placed on a “Grey list”.

The “Grey list” contains a list of jurisdictions. They are under increased monitoring and are required to address strategic deficiencies in their regimes. To counter money laundering, terrorist financing, and proliferation financing. From an industries perspective, when the FATF places a jurisdiction under increased monitoring. It means the country has committed to swiftly resolve the identified strategic deficiencies. Within agreed timeframes and is subject to increased monitoring.

Enjoy the Read!

The Impact of Grey listing South Africa

Policies Implementation in South Africa to curb AML/CTF&P

The below key amendments were made to the FIC Act :

The objectives of the Financial Intelligence Centre (“Centre”);

Lessons from other Countries regarding the Grey List:

While South Africa is currently on the watch-list for the Grey List. It is all financial industries’ duties to ensure compliance.

The duties to which Accountable Institutions (Financial Industries) should adhere to. In order to avoid being grey-listed you should include the below:

• To develop a Risk Management and Compliance Programme (RMCP);
• Conduct Customer Due Diligence (CDD) and ensuring that all clients are identified, verified, screened and risk rated;
• To develop a risk based framework that would allow the financial industries.
• To curb risks relating to money laundering and terrorist and proliferation financing;
• Develop a compliance framework and appoint a compliance officer;
• Conduct training on AML/CTPF risks and controls;
• Effectively keep records; and
• Effectively submit regulatory reports to the FIC.

Given the stringent monitoring on South Africa’s controls around monitoring. It is always key to ensure compliance duties are adhered to.

Rahn Consolidated’s articles and case studies are aimed at socialising, climatising, creating awareness. Cautioning economic participants regarding economic crime schemes and Proliferation Financing. The focus will be on anti-money laundering. The investigations around economic crime scheme risks, reporting, and most importantly, its regulatory compliance. The term “Economic crime schemes” is often used interchangeably with “Financial Crime”.

Issue No.19 focuses on aspects contained in the Financial Action Task Force (FATF) Mutual Evaluation Recommendations and Immediate Outcomes (IOs). Which affect all Financial Institutions. We have seen how Anti-Money Laundering (AML) and Counter Terrorist and Proliferation Financing (CTPF) laws have greatly affected banking, insurance, and financial institutions. There are certainly greater risks of non-compliance at this stage. It is vital to get your business compliant as soon as possible to avoid potential regulatory fines.

In this issue, we will focus on cases affecting Proliferation Financing as part of Immediate Outcome 4 (IO4). South African Accountable Institutions must know which countries are regarded as high-risk . When it comes to Proliferation Financing and start embedding controls to ensure that they curb these risks.

Financial Action Task Force Recommendations: A case study on industry impact of Immediate Outcome 4: Preventative Measures on Proliferation Financing (Broader Africa)

Enjoy the Read!

Mutual Evaluation Report (MER) Immediate Outcome 4 (IO4): Preventative Measures

The FATF MER Immediate Outcomes apply to the following financial institutions:

• Large banks from a material and risk perspective;
• The securities sector (Financial Service Providers and Collective Investment Schemes managers) mostly from a material perspective;
• High-risk sectors: estate agents, attorneys, and casinos.
• Several Financial Institutions are not subject to all the AML/CFT obligations which impact the effectiveness of preventive measures. The legislation has however been evolving to ensure that all Financial Institutions have the same robust controls to curb AML/CFT.

“Proliferation is defined by the Financial Action Task Force (FATF) as the illegal manufacture, acquisition development, export, trans-shipment, brokering, transport, transfer, stockpiling, or use of nuclear, chemical, or biological weapons and their means of delivery and related materials.”

Prohibitions against Financial Institutions

Below are financial prohibitions against which Financial Institutions should be guarding (in this example North Korea, officially known as the Democratic People’s Republic of Korea (DPRK), is the focus point):

Controls on financial institutions	Financial institutions are prohibited from maintaining relationships, including correspondent banking relationships, with DPRK financial institutions
Controls on vessels and aircraft	Leasing or chartering vessels, aircraft, or crew services to/from DPRK is prohibited
Prohibitions on financial support	Includes granting of export credits, guarantees, or insurance

From a FATF perspective, the below recommendations relate to proliferation financing:

• Recommendation 1: Requires countries to identify, assess, and understand their Proliferation Financing risks, take commensurate action to mitigate these risks, and require Financial Institutions to do the same.
• Recommendation 2: Requires effective national cooperation and coordination mechanisms to combat Proliferation Financing.
• Recommendation 7: Requires implementation of United Nations Security Council Resolution Terrorist Financing Sanctions on Proliferation Financing (i.e., asset freezes).

Proliferation Financing Case Study

Although there are not many proliferation case studies in South Africa, the most prominent case in Africa, which showed why North Korea is set at high risk when it comes to proliferation financing, emanates from the Democratic Republic of Congo (DRC).

Background

• Congo Aconde was registered as a company by two North Koreans (Pak Hwa Song and Hwang KilSu) in 2018 in the DRC;
• They facilitated construction projects for the DRC Government in three provinces from 2018 to late 2019;
• They further engaged in activities that appear to violate UN, EU, and US sanctions which include but are not limited to:
• Opening bank accounts at Afriland First Bank for their company;
• Undertook construction projects in the DRC by erecting statues, a type of construction activity explicitly forbidden by the UN sanctions.
• The Congolese government funds reportedly served to pay for the statues.

Act of falsification: this is where conducting Customer Due Diligence is prominent

• The Congolese provided the North Koreans with passports during the company formation process;
• The passports indicated they are “Ministry of Foreign Affairs” employees;
• They were in the DRC for official government business;
• The Nationality was therefore recorded as ‘Korea’ or ‘Korean’;
• Congo Aconde, therefore, listed a residential address on incorporation records.

Acts of Proliferation Financing:

• There were US Dollar bank accounts opened at Afriland First Bank in the name of Congo Aconde, that maintained a corresponding relationship with other Banks, which lead to the opportunity to conduct US Dollar transactions without restriction;
• The Bank indicated the account of Congo Aconde received $407,800 in deposits and approximately $408,145 in withdrawals. It was further indicated that these transactions were in cash and not electronic transfers, which shows the importance of establishing Cash Transaction Reporting capabilities embedded in the business.
• And finally, the Bank indicated no incoming or outgoing international transfers which then, in turn, meant that the MLRO did not submit an International Fund Transfer Report. This implies domestic funding through Congolese funds or bulk cash transfers.

As part of AML/CTPF capabilities Rahn Consolidated provides, it assists organisations to build systems to conduct client identification and verification and further screen individuals and institutions against among other sanctions, terrorist, and proliferation lists.

Ref: The Sentry