NIKOIL Bank uses a solution by Jet Infosystems to control illegal transactions

03/16/2012

Moscow - NIKOIL Bank and Jet Infosystems have launched a system to control money laundering. The AzAML system developed by Jet Infosystems meets new legal requirements in Azerbaijan as well as international standards.

In 2010 the Azerbaijan government started a program to tighten control over illegal financial transactions. NIKOIL was one of the first banks in the country to respond to the new regulations by ordering a system to prevent money laundering, namely, the AzAML system, a unique solution developed by Jet Infosystems for the Azerbaijan banking sector.

Jet Infosystems’ experts reviewed the bank’s functional requirements to the system and deployed a testing environment to customize the product, particularly by increasing its flexibility to respond to current needs. The AzML also had to be integrated with NIKOIL’s automated banking system (ABS) to receive data on clients and transactions. Once the integration was completed, Jet Infosystems in cooperation with the NIKOIL team ran a final test on the system. In December 2011, the system went into commercial operation.

“Early in the project most deployment work was done remotely from our office in Moscow. Later the project was joined by local experts from Jet’s Azerbaijan office. In the future the system can be easily adjusted by our maintenance and support staff to meet any new legal requirements,” says Evgeniy Brenneysen, commercial director, Jet Infosystems office in Azerbaijan.

The system consists of several modules for customer identity management, transaction monitoring, document management, reporting and analytical reporting, as well as an administration module. Customer data periodically received from the ABS or other external sources can be updated as needed. AzAML can refer each customer to a certain risk group and check clients against the bank’s “black” and “grey” lists. The bank can maintain its own black list as well as download these lists from organizations such as the UN and OFAC. The module is based on the KYC (KnowYourCustomer) principle which belongs to international AML standards.

Emin Mamedov, director, NIKOIL Bank IT department, says: “Since no such system has ever been deployed in Azerbaijan before, we certainly had to encounter a few difficulties. Nevertheless, thanks to excellent cooperation between our experts and Jet Infosystems we succeeded in becoming the first bank in the country to implement an AML solution and integrate it with the bank’s ABS.”

AzAML identifies suspicious banking operations using a set of scenarios (scripts) designed to analyze transactions and reveal preset client behavior patterns. All the scenarios were developed in accordance with Azerbaijan law. Each transaction is checked in real time against a list of scripts. Whenever AzAML detects a suspicious or controlled transaction it automatically creates a file to be reviewed by appropriate bank staff. The system uses a document management mechanism to monitor the entire investigation and assign a certain status to the file at each stage of the review.

“This project has addressed several business problems at once. Apart from bringing the bank into compliance with AML regulations, it has automated many monitoring tasks and minimized transaction risks. AzAML is a virtually ideal match for our needs,” comments Fuad Tagiev, Deputy Chairman of the Board, NIKOIL Bank.


About the client

NIKOIL Investment and Trade Bank is a leading Azerbaijan financial institution that offers a full range of traditional and highly innovative banking products. The bank has 17 branches in Baku and elsewhere in the country.