Berlin-based FinTech company solarisBank has formed a partnership with Israeli RegTech startup Clarus.io.
The challenger bank said the deal will streamline its compliance processes and scale its local and international activity using Clarus’s transaction monitoring platform. Despite recent regulations, such as the 4th EU Money Laundering Directive (MLD4), making transaction monitoring a requirement for every regulated entity, the process is often the overlooked element of AML Compliance according to solarisBank.
By analysing customer information procured during the KYC process, against the customers actual activity, suspicious patterns, outliers and activity that mirrors known money laundering schemes can be identified, investigated and reported.
“It’s been a very collaborative and fast-paced process working with Clarus.io due to their great knowledge of compliance requirements” said Till Harnos, head of transactional Products solarisBank. “We received tremendous guidance in the on-boarding process to bringing the product live and are very much looking forward to future system enhancements.”
Founded in 2016, Clarus.io aims to provide simple, innovative solutions to financial institutions of all sizes, making AML compliance a ‘business enabler and not a business inhibitor’.
After its clients send Clarus.io all relevant transaction data via API, the RegTech runs it through its detection engine, which analyses all customer and transactional information and flags suspicious activity in relation to money laundering and terrorist financing. That information is then transferred to its investigation platform which provides numerous tools for analysing, automating and documenting the process of investigating the suspicious activity.
Back in March, solarisBank closed a €56.6m Series B round. BBVA, Visa, Lakestar and ABN AMRO’s Digital Impact Fund contributed to make their first investments in company, while existing backers Arvato Financial Solutions and SBI Group also took part.
Just weeks after the round, the bank chose zeb.control’s bank management software to combat risk. zeb.control said it will support solarisBank in present value and periodic interest rate risk management, liquidity risk management as well as monitoring of the risk-bearing capacity. The company will also offer solarisBank flexible scenario analyses for holistic total bank management including all relevant regulatory KPIs.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
