How does transactional monitoring and automatic alerts work? AML+

Now in Pirani your organization can perform transactional monitoring of its customers and counterparties, as well as create automatic alerts that can be managed in a timely manner, thus preventing LAFT risks.

Automatic alerts are generated from transactional monitoring rules built in the "Rules Engine" section, i.e. the conditions or validations that the alert will assess when there are changes in the normal information of the risk factor: if the conditions are met, the alert is triggered. 

→ Remember that to enjoy this functionality it is necessary to have the AML management system from the annual starter plan and purchase the AML+ extension.

How does the rules engine section work?

Now in Pirani we transformed the "Notifications" section and turned it into "Rules Engine" a section where you will find two functionalities: notifications and monitoring.

Notifications: You will be able to configure the notifications you want to receive by email, you can learn more about this functionality in the notifications tutorial.
Monitoring: You will be able to create transactional monitoring rules to generate automatic alerts.
Important: Rule is the set of conditions for the assessment of transactional monitoring.

How to create rules for transactional monitoring?

To create the rules you must go to the top bar and click on the gear shape, there you will find the options to parameterize, click on the "Rules engine" card, then click on the "Create rule" button and then choose the rule category "Monitoring".

Here you will find the general information boxes about the rule you are going to create to receive the automatic alerts. 
Name: Assign a clear name that will serve as a guide to the rule.
Description: Write all the information about why the rule is created and what you want to alert with it.
Responsible: Assigns a responsible person to the rule, who will be responsible when an automatic alert is created in the "Alerts" section.
To whom the alert will be applied: Choose the risk factor between customers and counterparties, which you are going to monitor with this rule.

After writing and assigning the general information of the rule, you should create the conditions for the current rule. To create the conditions you should click on the "Create conditions" button and then click on the "Add condition" button.

⚠️ Before moving on to the process of building a condition, it is important to keep in mind that the conditions are what the rule will assess when there are variations in the behavior of the risk factors and thus create the alert.

How to build the conditions for the rules?

To build the condition, after clicking on "Add condition" the conditions section will open, in which you must first choose what type of condition you are going to put to the rule between comparison and speed.
Comparison: These rules compare two values using an operator to detect suspicious operations performed by your customers.
Velocity: These rules are useful to detect unusual behavior of your customers over time with aggregation operations.

How to build a comparison condition?

The comparison condition allows you to perform a transactional monitoring through comparisons between values of the same entity, it has a structure composed of 3 mandatory steps and a preview: Value, Operator and Compare with.
Below you will learn how to complete each of these steps:

Step 1. 
Value: Choose the input value from the direct fields of the entity to be analyzed. Only fields that allow comparisons such as date, numeric and list type will appear.

Step 2.
Operator: Choose the type of comparison, the mathematical or logical operator with which the comparison will be made. In this option different options are shown depending on the type of value chosen in the previous step. 
For example, if the value chosen is list type, "Equal to" and "Different from" are displayed. But, if the value is date or numeric type you will find in the operator options such as "Greater than", "Less than", "Greater than or equal", among others.


Step 3. 
Compare to: Choose the value against which you want to compare the input value chosen in step 1. The options that appear in this step will depend on the field chosen in step 1. 

List type: If the value chosen in step 1 is a list type in this last step you will be able to choose a fixed value from the options of the chosen list. For example, if in step 1 you chose type person, in step 3 you will find the fixed value box and the options of natural or legal person.

Date type: If in step 1 the value chosen is date type in step 3 the comparison options will be a fixed value of a selected date.


Numeric type: If the value chosen in step 1 is numeric type in step 3 you will be able to choose the value between fixed field, existing field, percentage of value and additional percentage to value. 


Fixed value: In this option the tool searches and compares the chosen values in the chosen risk factor. For example, this time it searches and compares all customer revenues.
Existing field: In this option the comparison will be made between numeric type fields of the same entity. For example, in this case you could compare revenues greater than or equal to liabilities.
Percentage of value: In this option you choose a percentage below the value, which will be subtracted from the value of the item to be chosen. For example, if the percentage is set to 50% and the liabilities are chosen, the comparison will be between the income and 50% of the customer's liabilities.
Additional percentage to a value: In this option a percentage is chosen which will be added to the value of the item to be selected. For example, if the percentage is set to 80% and the liabilities are chosen, the comparison will be between the revenue and 180% of the customers' liabilities.

Finally in the preview, you will see a sentence that shows you the condition created for the rule. For example, in the following image you can see the following condition, a comparison where the customers have income equal to 30% of their liabilities.

How to build a velocity condition?

Velocity conditions are not static conditions like comparison conditions, they allow you to perform an analysis of transactional behavior over a range of time by means of aggregation operations. However, it has a similar structure to the comparison since there are 3 mandatory steps and a preview: Value, Operator and Compare with.
Below you will learn how to complete each of these steps.

Step 1. 
Value: this step has some mandatory and some optional fields. 

For the mandatory steps: 
First you must choose the aggregation operation between average, sum, count, maximum and minimum. 
Then choose the value you are going to work with among the numerical and variable fields of the risk factors transactions and products. 
Finally choose the time range, you must take into account that the tool takes the current date as a base and runs backwards, for example if you choose 2 and the unit month, the tool will study the values chosen during the last 2 months.

For optional steps: 

• Add partitions: Partitions or second-order aggregations allow you to create subsets from the initial set, which allows you to give more visibility to the behavior happening between periods. Here you can only choose one condition.

• Add condition: To add a subcondition, you will find again the 3 basic steps to build a condition (value, operator and compare with). However now the options are limited as it will only show you the fields of the risk factors that have been chosen at the beginning of the rule and in step 1 of the condition. For example, in this case, we are applying the rule to the customers and in step 1 we chose a field that belongs to the products, so here I only have the options of customers and products. You can add as many sub-conditions as you consider necessary and the order of these does not alter the result.

Step 2. 
Operator: Choose the type of comparison, the mathematical or logical operator with which the comparison will be performed. In this option it behaves the same as step 2 of the condition by comparison.



Step 3. 
Compare to: Choose the value against which you want to compare the input value chosen in step 1. The options that appear in this step will depend on the field chosen in step 1 and vary between list, numeric and date type.  This option behaves in the same way as step 3 of the condition by comparison.


Finally in the preview, you can see a sentence that shows you the condition created for the rule. For example, in the following screenshot you can see the following condition, it analyzes the customers that have the average opening of the last two months equal to the revenue. 


⚠️ After completing the 3 steps you must click on the "Add" button to create the condition successfully.

How to add a condition to a group?

Before creating a new condition, you must take into account that in order for the rule you are creating to be fulfilled and create the alert, all the conditions within the group must be fulfilled. To add a condition to a group already created you must click on the "Add condition" button and build a condition with the steps mentioned above. 



In addition, you can delete and edit the conditions created within a group by clicking the trash can icon to delete and the pencil icon to edit.

How to create a condition group?

Additionally, if you create a new group of conditions, the alert will be created when one of the groups is fulfilled in its entirety, since it is an "OR" condition.
To create a new group of conditions you must click on the option "Add group" and follow all the instructions mentioned above.

You can also delete the group by clicking on the green text "Delete group".

How to edit a rule?

Go to the "Rules Engine" section, choose the rule you want to edit and click on the "See more" button, the form will appear so you can edit any of the fields and conditions. 

How to delete a rule?

If you no longer wish to have a rule you can delete it by going to the "Rules Engine" section and clicking on the rule of interest, there you will see a trash can icon on the right side before clicking on it, remember that this will delete any settings created and any scheduled alerts sent. If you are sure, click the delete button.

When are automatic alerts triggered?

When you perform a bulk load of risk factors, the tool will evaluate all the rules created, if after this assessment the behavior of the risk factors meets the conditions of the rules, an alert will be created in the alerts section and the assigned responsible will be notified via email.