COCC, Avon
Five institutions recently committed to installing Avon-based COCC’s automated Anti-Money Laundering system. COCC offers the system under its Sentry Services suite of fraud prevention products. Among the five are Abacus Federal Savings Bank and Fulton Savings Bank, both in New York; BankNewport in Rhode Island; and Torrington Savings Bank.
“Increased regulatory pressure is driving many community-based institutions to rethink their approach to fighting money laundering activity,” said COCC Strategic Products Director Linda Stahl. “Automated detection tools, plus integration with the transaction processing system and comprehensive displays of potential risks and actions taken, are generating exceptionally strong interest in this product.”
Money laundering is estimated to involve more than $1.5 trillion worldwide each year. With money center banks largely protected by sophisticated anti-money laundering technologies, the illegal activity now flows to smaller financial institutions. “Unfortunately, this creates new concerns and operational challenges for community banks just as other regulatory needs are draining their resources,” Stahl said.
COCC’s Sentry Services and its Anti-Money Laundering product detect money laundering activity while containing regulatory overhead, according to Stahl. “In the case of AML, this means providing a high-quality outsourced solution that implements the banks’ money laundering policies in a highly cost-effective manner,” she added.
COCC formed an alliance with a leading provider of anti-money laundering solutions, STB Systems, to automate the complex tasks involved in complying with AML regulations. Some 175 organizations throughout the world use STB’s automated compliance solutions.
“This is a top-of-the-line system by any standard,” said Stahl. “We are pleased to have adapted it for core and non-core clients.”
Stahl explained that COCC’s AML solution accumulates a permanent compliance database from multiple transaction sources. As a rules-based solution, the system uses pre-set and client-specific “anomalies” to automatically alert the bank to patterns of exception activity and to identify potential money-laundering suspects. When suspicious activity is discovered, bank personnel can view all the information involved in identifying that activity, as well as decisions made and actions taken.
“Our solution automatically generates information for Currency Transaction Reports and Suspicious Activity Reports for review by bank officials,” said Stahl. “The system fully documents the alert, research, decision and filing of the suspicious activity reports.”
Jill Sung, president and chief executive officer of Abacus Federal Savings Bank, said last year’s installation of COCC’s Anti-Money Laundering system is critical to her operation. “Any financial institution performing this process manually can’t possibly get the job done,” said Sung. “You need a high-powered technology solution to meet the constant challenge of discovering structured transactions.”
Sung added that the bank is especially pleased with the system. “We like the system’s flexibility and its ability to automatically generate information for the Suspicious Activity Reports and to document activities supporting the SARs thereafter,” she said. “Nobody knows what the next round of examinations will require, but we believe that our AML system will be able to adapt to additional requirements that come in the future.”
Stahl said she expects further AML product sales as regulators step up their pressure on community banks and credit unions.
Bank Helps Found CEF
The Simsbury Bank & Trust Co. recently became a founding partner of the Canton Education Foundation.
Barbara Hanifin, the bank’s Canton branch manager, presented the $2,500 donation to CEF Director Penny Phillips, President Jill Cromwell and Vice President Geoff Furtney at Simsbury Bank & Trust’s new Canton branch.
The Canton Education Foundation is an independent nonprofit organization made up of volunteers whose mission is to support unique projects and encourage innovation in teaching and learning by raising funds and awarding grants in support of exceptional and inspiring educational enrichment opportunities for Canton residents.
