Using Technology to Curb the Threat

By Reetu Khosla  |  Posted 2010-11-04 Print this article Print

Using technology to curb the threat

Technology can play a key role in bridging the gaps that currently exist in financial institutions.  Fraud, Anti-Money Laundering (AML), sanctions and Know Your Customer (KYC) initiatives are areas where technology can make an immediate and drastic difference in operations through an integrated risk management approach.

KYC focuses on automating the regulatory requirements that are specific to global jurisdictions, customers and products in the onboarding of new customers. It is the due diligence and regulation that financial institutions and insurers must perform to identify their clients and monitor relevant information pertinent to doing business with them. As technology can assure that proper processes are followed, the fact that policies and procedures can be automated ensures compliance while accelerating the client on-boarding process. This drives better service and experiences for their clients.

Fraud and money laundering have also gotten far more sophisticated in recent years. Money laundering efforts used to focus on individuals who would bring bags of money into bank branches to make suspicious transactions. Today, insider trading, stock pump and dump schemes, and collusion between employees of financial institutions and criminal rings all pose significant threats.

Technology and software applications can now monitor customer transactions on a daily basis. They use customer information and account profiles to generate alerts on suspicious activity for the financial institution. Financial crimes case management technologies are further used to triage, investigate and identify high-risk activities and cases.


Reetu Khosla is the Director of Financial Crime Solutions at Pegasystems Inc. She has several years of regulatory experience in the banking and non-banking sectors, specializing in financial crimes and anti-money laundering (AML) compliance, operations and management. Reetu has implemented, developed and managed international Suspicious Activity Report (SAR) programs, sanctions, high-risk customers (foreign financial institution and private banking), regulatory response and internal audit response management. Reetu has been invited by the FBI and private sector to train financial institutions on building effective AML programs. Her most recent positions include director of risk at Fidelity Investments, consulting financial institutions on developing their AML/fraud programs and working with the Department of Justice on analysis for AML regulatory requirements. She can be reached at

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