1. Confidential 1 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 Role of IT in AML / KYC Arun Pingaley Head – Functional Solutions and Experts Group, Reveleus – an i-flex business AML / KYC Seminar Indian Institute of Bankers Hotel Taj Westend, Bangalore October 5, 2006 Sept 28, 2006 Closed Loop. Clear Vision.

2. Confidential 2 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 Brief Introduction & Background

3. Confidential 3 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 i-flex acquires Mantas

4. Confidential 4 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 Reveleus: Clients / Analyst Coverage Top Tier Risk ClientsAnalyst CoveragePartners Other Customers Antwerp Diamond Bank

5. Confidential 5 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 Reveleus in Risk & Compliance Reveleus Basel II Solution emerges as the market leader Reveleus was named as a leader in Gartner’s Magic Quadrant Tower Group named Reveleus the “crown jewel” of i-flex and ranked Reveleus Basel II highest Celent group considers Reveleus as the North American Market Leader in Basel space August ‘05 December ‘05 January ‘06 June ‘06

6. Confidential 6 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 AML / KYC – a solution provider’s viewpoint

7. Confidential 7 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 Three major categories of requirements OFAC Compliance US Treasury’s Office of Foreign Assets Control Bank Secrecy Act KYC / EDD Know your customer Enhanced Due Diligence

8. Confidential 8 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 OFAC Compliance Requirements Very US specific, OFAC publishes a black list of Individuals, Companies, etc. for whom banking transactions should not be allowed by US Banks This black list is referred to as the ‘SDN Database’ where SDN stands for Specially Designated Nationals Further, individual banks and governments (for foreign banks operating in the US) too maintain a separate black list of their own All banking transactions need to lookup the SDN Database

9. Confidential 9 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 OFAC Compliance Solution Components SDN Database Compilation and storage of the database A filter for looking up this database Regular updates to the SDN Database Real-Time Monitoring of all banking transactions & Exception Reporting Technical Requirements Data Model & Data Loading Split Second Database Lookups Near Zero false matches Real Time Alerting

10. Confidential 10 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 Bank Secrecy Act of 1970 Purpose Deter laundering Create an investigative "paper trail" for large currency transactions Improve detection and investigation of criminal, tax, and regulatory violations Requirements CTRs (Currency Transaction Reports), SAR (Suspicious Activity Report) CK (Check Kiting)

11. Confidential 11 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 Bank Secrecy Act of 1970 Solution Components Data Warehouse Optimal storage of all transactional data Rules Engine BI / Reporting Tools CTR / SAR generation Artificial Intelligence based reporting (Pattern Identification) Business Rules based reporting (Pattern Detection) Case Handling Work Flow Management Security Document Handling Operational Controls For Check Kiting – control unsecured overdrafts and write-offs Check Kiting - refers to use the lag time between check cashing and check clearing to generate illegal revenue

12. Confidential 12 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 BSA – Solution Details Operational Data Stores Transactional Data Rules Engine for Detection Rule Patterns Profiling Outlier Detection Text Mining Sequence Matching Link Analysis Networks of Individuals BI / Reporting Tools Workflow Tools (BPEL Engines – Business Process) Alerting Engines

13. Confidential 13 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 KYC / EDD Background The US Patriot Act, requires, banks to “Know Your Customer” (KYC), before opening accounts for them. EDD refers to Enhanced Due Diligence Rules, refer to policies that help an institution to detect and deter fraudulent transactions Requirements 3 minimum checks at the time of account opening OFAC Credit Bureau Fraudulent Database

14. Confidential 14 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 KYC / EDD – Solution Components Solution Details List Lookups Pattern Matching, Text Mining, Link Analysis, Profiling Integration with Account Opening Software Workflow Capabilities

15. Confidential 15 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 High Level Solution Architecture

16. Confidential 16 AML/KYC Seminar, Indian Institute of Bankers, Hotel Taj Westend, Bangalore – October 5, 2006 Role of IT in AML / KYC Arun Pingaley Head – Functional Solutions and Experts Group, Reveleus – an i-flex business AML / KYC Seminar Indian Institute of Bankers Hotel Taj Westend, Bangalore October 5, 2006 Sept 28, 2006 Closed Loop. Clear Vision.