Revolutionizing Compliance: A Deep Dive into BPN’s AI Journey with H3M

Authors: Arda Akay, CAMS, CGSS, CAMS Audit — BPN Payment & E-Money Services; Tolga Kurt, PhD — H3M Analytics Inc.

Commencing Thoughts: Financial landscapes are evolving at a rapid pace, mandating forward-thinking approaches to risk management. BPN, a benchmark in the realm of money transfers, has always perceived compliance as a pledge to its vast clientele. The collaboration with H3M brought this commitment to life, integrating pioneering tools like KROTON and the RUMI compliance search engine to elevate BPN’s risk mitigation strategies.

The Compliance Conundrum: Navigating BPN’s dense transactional data detecting dubious activities emerged as a pivotal concern. The intricacies of the task involved:

• Spotting high-risk clients amidst a sea of legitimate transactions.
• Associating multiple related clients under one case.
• Delving into the potential negative affiliations of these identified entities before definitive regulatory measures.

H3M’s Compliance Blueprint:

1. Suspect Miner — The ML Vanguard: Transitioning from traditional detection methods, H3M’s KROTON Suspect Miner, fueled by machine learning, embarked on a meticulous scan of BPN’s data reservoir. The outcome was a refined roster of potential high-risk parties, validated with an impressive accuracy rate. The module’s innovative design leveraged over 100 distinguishing features, encompassing location-specific risks and transactional patterns.

Machine Learning based Transaction Monitoring

2. Link Miner — Unearthing Transactional Threads: Identification of potential risk-bearers led to the deployment of the KROTON Link Miner. The result was a transparent network analysis representation of transactional affiliations, enabling quick interpretation of the potentially suspicious networks.

Suspicious Network Detection for Money Laundering

3. RUMI — The Compliance Magnifier: To decode the backgrounds of these marked entities, BPN harnessed the power of H3M’s RUMI — a dedicated compliance search engine. RUMI’s prowess lies in its expansive data access, spanning global sanctions to notorious data breaches.

Compliance-specific Search Engine

4. Information Fusion and Action Execution: Armed with the rich insights from the suite of tools, BPN channelled the information to devise decisive measures, from regulatory reporting to customer risk categorisation.

Reflecting on the Impact: H3M’s solutions streamlined BPN’s compliance workflow:

• Process Expediency: Conventional methods were replaced with agile, tech-infused solutions.
• Precision: The AI-driven approach ensured continuous refinement, minimizing inaccuracies.
• Information Richness: RUMI, with its exhaustive data access, brought depth to BPN’s investigations, revealing hidden affiliations and potential risks.

Final Words: In the dynamic realm of financial compliance, innovative solutions transition from being mere add-ons to essential assets. BPN’s journey with H3M showcases this transformation, positioning it as a model for global financial enterprises.

BPN Snapshot: BPN, Turkey’s trailblazer in international money transfers in partnership with Western Union, facilitates swift financial transactions across its vast network of over 2,000 representatives. With its commitment to service excellence, BPN continues to redefine financial convenience for its clientele.