Automated transaction monitoring
Jyske Bank monitors on an ongoing basis its clients’ transactions and behaviour. The purpose of the ongoing monitoring is to ensure the identification of atypical transactions, transaction patterns, and unusual activities. This will ensure that Jyske Bank is not abused for the purposes of money laundering and financing of terrorism.
Listen to Jane Nygaard, the head of Jyske Bank's Customer Due Diligence and Anti-Money Laundering Division, explaining the bank’s efforts to spot activities related to terrorism and money laundering.
Listen to the podcast on the bank’s efforts to prevent money laundering (in Danish)
The monitoring triggers more than 1000 alarms every month
The bank uses a number of automated solutions to identify atypical transactions, transaction patterns and unusual activities, which are investigated by the employees of a centralised specialist department. If an investigation establishes grounds for suspicion of money laundering or financing of terrorism - and if this suspicion cannot be disproved - a report will be submitted to the Money Laundering Secretariat (the Danish FIU).
AML (Anti Money Laundering) is the department of Jyske Bank investigating alarms caused by atypical transactions, transaction patterns and unusual activities.
An alarm is triggered, for instance, by transfers of money to high-risk countries or transactions involving cash amounts, explains Marianne Dyrby, Head of AML.
Almost 70% of the reports to the Money Laundering Secretariat (the Danish FIU) under the Danish State Prosecutor for Serious Economic and International Crime contains a cash element. Generally there are very few reports of suspicion of financing of terrorism, while reports of money laundering, particularly based on suspicion of social security fraud or tax evasion, account, by far, for the majority of all reports.
250 man-years spent on efforts to prevent money laundering and financing of terrorism
Monitoring politically exposed persons
S.18(4) of the Danish Money Laundering Act stipulates stricter monitoring of clients who are politically exposed persons, or who are close associates or close business partners of a politically exposed person.
To comply with this obligation, Jyske Bank has initiated both manual monitoring and enhanced machine monitoring of the accounts of the above-mentioned persons. The manual monitoring takes place by reviewing the clients' accounts at regular intervals.
In addition, the risk profile of politically exposed persons is upgraded relative to the risk that the Bank may be exposed to abuse for money laundering purposes. As a result, the clients have their KYC updated at regular intervals. Through such update, atypical transactions will also be flagged for the person performing the update.