Compliance Tool Ready for Banks

Sybase, TightLink form alliance to give financial services firms tools for Patriot Act compliance.

Sybase Inc. today announced that it will private-label TightLink Corp.s CIS 3 Compliance and Investigation System so that banks will be able to use it in connection with Sybase integration software to comply with new reporting regulations.

The agreement comes in the wake of the USA Patriot Act of 2001 that goes into effect in October and requires financial institutions to identify and report to the federal government any suspect activity from customers.

Sybase estimates more than 6,000 financial institutions are facing the October 2002 deadline.

The Sybase PATRIOTcompliance Solution will combine Sybases business process integration technology and Enterprise Portal with TightLinks anti-money laundering and Bank Secrecy Act compliance technology to help banks incrementally comply with the regulations.

The software, available now, is intended for use by a number of departments within banks, brokerages and other financial institutions to determine the resolution of exceptions triggered by suspicious activity, officials said. Using the combined software, financial institutions will have the capability to establish detection filters, monitor in real time complex financial transactions, automatically file Suspicious Activity Reports, follow ongoing investigations and disperse automatic notifications when cases need to be escalated, Sybase officials said, in Dublin, Calif.

At the same time compliance officers, account managers, fraud departments and fund transfer professionals will have the ability to work together in a Web-based, collaborative environment to track fraudulent activity. TightLink, of Berkeley, Calif., develops business-to-business collaboration software.

In practice, the PATRIOTcompliance software triggers exceptions by monitoring and examining individual financial transactions or sets of transactions for pre-defined suspect activity. Suspect activity includes a number of parameters like changes in amounts of money moved or transactions with people or countries targeted on watch lists such as the Office of Foreign Asset Controls Specially Designated Nationals list circulated by the FBI.

Once an exception is flagged a case is automatically created in the TightLink CIS application, where the appropriate financial officials can access it.