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Anne Lapkin SVG Global Strategy and Marke6ng [email protected]
Unifying Informa-on For Compliance Processing Content intelligence and graph
Informa3on -‐ not data is the means of produc3on
GARTNER 2013
Data • Structured • Digital • Ac3onable
Content • Unstructured • Difficult to
analyze • Inaccessible
(Triple Store /Graph DB)
A short history of informa3on
Confluence
• Technical change leads to a new way of working – Time, money and risk value
• Graph – Unbounded ques3on asking – Massive scale
• Content Intelligence – Makes content-‐based informa3on available to the graph
• Unified Informa3on – Open and proprietary linked data – Internal/external sources – Structured/unstructured informa3on under a consistent seman3c
umbrella
Delivers compliance processing over the full informa3on set at a frac3on of the cost and 3me than tradi3onal methods.
Content Intelligence
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3$-0"-0(45*0$&#(
Informa(on)Scien(sts)Business)Analysts)Subject)Ma8er)Experts)
Design'and'collabora/ve'enrichment'of'ontologies'
Seman(c)Modelling)
Contextual*metadata*driven*search*and*naviga4on**
Portal'Users'
Knowledge'Discovery'&'Surfacing'
Today & Tomorrow
INFORMATION SERVICES
AUDIENCE
SYSTEMS AND APPLICATIONS
MDM
Business Applica-ons & Workflow Systems Portals Business Intelligence
STRUCTURED
Author Customer Service Agent Editor Partner
UNSTRUCTURED
Enterprise Search
Databases | Warehouses CMS | Inf. Feeds | ERDMS
Content Intelligence & Graph SEMANTIC SERVICES
KPMG
KPMG LLP provides audit, tax and advisory services to a broad range of domes-c and interna-onal en--es.
Problem FATCA and KYC compliance is a manually intensive, expensive problem. Non-‐compliance can threaten the viability of a financial ins3tu3on Solu-on KPMG has built a managed service that provides automated collec3on and processing of these documents, flagging of suspect records and produc3on of required reports
Document types
10K Amendment to Trust Agreement Ar3cles of Agreement Ar3cles of Associa3on Ar3cles of Incorpora3on Ar3cles of Organiza3on Astrus_En3tyWebsite_SrMgmtPage Astrus_Exempt_US_FI_Website Astrus_Exempt_US_Publicly_Listed_En3ty_Website Astrus_Principal_Place_Business Astrus_USAGOV_ENTITY_REF_DATA Astrus_Website Audited Financial Report Auditor Le^er Bankers Almanac Report Banking License Bankruptcy Filing Bearer Share Cer3ficate Birth Cer3ficate Bloomberg Screen-‐print Board Resolu3on Business License Business Registra3on Cer3ficate Cer3ficate of Foreign Status Cer3ficate of Forma3on Cer3ficate of Good Standing Cer3ficate of Guardianship Cer3ficate of Incorpora3on Cer3ficate of Incumbency
Cer3ficate of Limited Partnership Cer3ficate of Loss of US Na3onality Cer3ficate of Residence Charter Client Confirma3on Client Representa3on Le^er Company Register Controllers Report Credit Approval Credit Report Customer Authorized Signatures Customer Categoriza3on Ques3onnaire Deed of Establishment Drivers License Dun and Bradstreet Report FATCA Status Explana3on Le^er Financial Report FINRA Broker Foreign Bank Cer3ficate Foreign Bank Recer3fica3on Government Agency Le^er Government Photo ID Investment Management Agreement IRS Le^er LLC Opera3ng Agreement Memorandum of Associa3on MiFID Classifica3on Informa3on MiFID Revised Term (supplemental) Name Change Form New Rela3onship Form
Non-‐Disclosure Agreement Non-‐US Financial Ins3tu3on Ques3onnaire Offering Memorandum Offshore Banking License Organiza3onal Structure Document Owner Repor3ng Statement Partnership Agreement Passport Paycheck Stub Plan Descrip3on Power of A^orney Private Placement Memorandum Proof of Custody Proof of Ownership Proof of Regula3on Prospectus Protocols of Appointment of the Board of Directors Registra3on Cer3ficate SEC Form ADV Share Register SNL Financial Website Screen Print Social Security Card Trading Authoriza3on Trust Agreement Unaudited Financial Report
Owner repor3ng statement Status explana3on le^er Cer3ficate of residence
W-‐9 W-‐8 IMY W-‐8 EXP
W-‐8 ECI W-‐8 BEN E W-‐8 BEN
KYC
FATCA
Case Management KYC & FATCA compliance
Marklogic 8
TIBCO
NoSQL Database
Client provided
CRM/ other
records
Credit Agency
The output
• Documents iden3fied as compliant, non-‐compliant or needs inves3ga3on
• Linked back to the original data and documents for audi3ng purposes
• Reduced team from 50 paralegals to 7 • >50% improvement in efficiency and speed of onboarding compared to best manual prac3ce, at significantly reduced error rates
• Enforces best prac3ce • Follow on poten3al for:
– Opt in/Opt out & Re-‐hypothica3on processing – Dodd Frank compliance – ISDA Se^lements – Mortgage applica3on processing – All compliance tasks involving content-‐based informa3on
Results
An exceedingly complex regulatory landscape
G20 commitments
Bank For International Settlements (BIS)
CPMI - Committee on Payments and
Market Infrastructures
FSB - Financial Stability Board
BCBS - Basel Committee on
Banking Supervision
IAIS - International Association of
Insurance Supervisors
IADI - International Association of
Deposit Insurers
CGFS - Committee on the Global
Financial System
Supranational FATF - Financial
Action Task Force on Money Laundering
IMF - International Monetary Fund
OECD - Organisation for Economic
Cooperation and Development
IAASB -International Auditing and
Assurance Standards Board
IASB - International Accounting
Standards Board WB – World Bank
IOSCO - International
Organization of Securities
Commissions
LEI ROC - Regulatory Oversight
Committee for the LEI
Financial crime Trading Risk/structural
European Union (EU)
EU Commission (DG Markt)
EU Council/Parliament
ESMA - European Securities and
Markets Authority
EBA - European Banking Authority
ECB - European Central Bank/
ESRB – EU Systemic Risk Board
EIOPA - European Insurance and Occupational
Pensions Authority
EU National Competent Authorities (NCAs)
FCA - Financial Conduct Authority
AFM - Autoriteit Financiële Markten
CONSOB -Commissione
Nazionale per le Società e la Borsa
PRA - Prudential Regulation Authority
BaFin - Federal Financial Supervisory
Authority
AMF - Autorité des marchés financiers
© JWG 2015
Complex 3melines
Source: JWG analysis of 30+ sources of regulatory information as at May 2014
First steps toward FTT for 11 member States
ECB to begin SSM
EMIR and MiFID DTS
FATCA pass through withholding begins
FATCA gross proceedings withholding begins FATCA reporting begins
AMLD IV proposed
Possible AMLD IV review
DGSD deadlines reduced to 15 days SRM contributions
DataGaps mandatory CCP reporting starts Solvency II guidelines due CRD IV entry into force
Possible Solvency II review Solvency II implementation CRD IV implementation DG phase 1
SEPA entry into force Extended SEPA migration deadline T2S second wave
T2S third wave T2S first wave Possible PSD 2 agreement/entry into force
ESMA final guidance (AIFMD)
AIFMD/UCITS V review due UCITS V implementation AIFMD implementation
MiFID II applies from this date MiFID II finalised EMIR implementation
2012 2013 2014 2016 2017 2019
Trad
ing/
post
-trad
e St
ruct
ural
/risk
Fi
nanc
ial c
rime
EMIR/MiFID II-MiFIR/CSDR/MAD II-MAR/CRS/SFTR
AIFMD/PRIIPS KIDs/UCITS V/MMFR
SEPA/PSD 2/T2S
CRR-CRD IV/Solvency II/DataGaps
SSM/SRM/BRRD/DGSD/BRA/CCP resolution
AMLD IV/Bribery
Market structure
Fund management
Payments
Risk management
Systemic risk and resolution
Protection of the system
2015 2018
CSDR/MAD II entry into force MiFID II
transposition
CSD implementation
MiFID II review due
IFRS/Benchmarks/FTT Accounting, benchmarks and tax
Proposal for benchmarks reg Benchmarks postponed Possible agreement on benchmarks
Benchmarks review after 3 years
DGSD transposition
SRM and bail-in begins
Ringfencing reg proposed Possible date for ban on proprietary trading
Ringfencing rules start
Trilogue on AMLD IV continues
FATCA/CRS
Possible AMLD IV implementation
BAD/SLL/CASS/SSR/Volcker rule Consumer protection
BAD entry into force
BAD review BAD transposition deadline
Wave 2: Resetting the policy Consultation/standards The 3rd wave Behind schedule
Expected date
Target met
Source: JWG analysis of 30+ sources of regulatory information as at May 2014
Tax evasion
© JWG 2015
FCA publish PRIIPS market study
PRIIPS KIDs implementation
PRIIPS KIDs review due
SLL postponed
T2S fourth wave
Solvency II ITS set 1
SRM/BRRD entry into force
The results
► Analyse ► Ingest ► Tag and link
Content feeds
ABC Bank cloud
Integration API ► Enterprise governance, risk and compliance ► Document management and workflow ► Programme and project management
Smart library • All relevant documents, tagged at the
paragraph level • Topic/theme • Relevant department • Type of guidance • More
• Integrated commentary to preserve corporate memory
Smart assessment • Find and align requirements • Assign accountability • Manage risk Maintain audit trail Smart integration • Powerful reporting • Customized data feeds
© JWG 2015
Other use cases
• Predic3ve analy3cs in healthcare • Heavy asset servicing
– Inventory, parts, skills, loca3ons • Compliance driven maintenance
– Maintenance records, procedures, engineering documents, schedules
• Export control on combina3on products – Components; legisla3on; export control orders
• Manufacturing/packaging tax op3miza3on – Ingredients; loca3ons; manufacturing agreements, tax legisla3on
The new technology is now
• Use of the full informa3on set • Much faster and cheaper than data marts • No pre-‐supposi3on • Ques3ons fall along a con3nuum
Predictable queries
Unpredictable ques-ons
Tradi-onal data warehouse
Content intelligence & graph
Opera-onal Inves-ga-ve
SMARTLOGIC – AMERICAS 560 S. WINCHESTER BLVD, SUITE 500 SAN JOSE, CALIFORNIA, 95128 TEL: 408 213 9500 FAX: 408 572 5601 SMARTLOGIC – EUROPE, MIDDLE-‐EAST AND AFRICA 200 Aldersgate London, EC1A 4HD TEL: +44 (0)203 176 4500 FAX: +44 (0)207 785 7014 WEB: WWW.SMARTLOGIC.COM EMAIL: [email protected] TWITTER: @SMARTLOGIC_COM © 2015 SMARTLOGIC SEMAPHORE LIMITED
