How Temenos Financial Crime Mitigation Helps Prevent Fraud and Meet Compliance Rules

Financial Crime Mitigation (FCM)

Today, every financial institution relies on solutions designed to combat financial crime. Financial Crime Mitigation (FCM) platforms enable banks to prevent regulatory fines, detect fraud, and safeguard their reputation, while also enhancing operational efficiency and reducing operational costs. These solutions support the risk-based approach that modern banks follow when managing compliance and financial crime.

Temenos addresses this challenge with its Financial Crime Mitigation capabilities, helping banks focus on the growing threat of financial crime while maintaining regulatory compliance. The platform offers flexibility in its deployment, enabling institutions to choose between cloud or on-premise implementations based on their operational and regulatory requirements.

Functional Architecture

The following illustration shows the screen request flows with and without alerts.

Considering both global regulatory pressures and day-to-day banking operations, Temenos FCM focuses on key areas such as Watchlist Screening, KYC, Transaction Monitoring, and Payment Fraud Prevention. Together, these capabilities create a comprehensive framework that helps banks identify suspicious activity, manage customer risk, and maintain compliance.

These capabilities include:

1) Fraud Detection – “Suspicious Activity Prevention”

Suspicious Activity Prevention (SAP) uses behavioral analytics combined with business rules to detect transactions that deviate from a customer’s normal behavior. By analyzing attributes such as balances, transaction frequency, amount, currency, and transaction type, the system builds unique customer profiles and identifies anomalies in real time. This allows banks to detect and stop potentially fraudulent transactions as they occur.

2) “PLD” – Profiling (Profile)

Profile is a packaged Anti-Money Laundering (AML) and Counter Terrorism Financing solution focused on customer profiling and transaction monitoring. It integrates easily with core banking platforms and provides flexible configuration, automated reporting templates, and monitoring dashboards. The solution simplifies compliance operations while improving the accuracy and speed of risk detection.

3) Watchlists (Screen)

Screen protects institutions by checking customers and transactions against sanctions lists and other watchlists. Using advanced matching algorithms, contextual whitelists, and automated processes, the system significantly reduces false positives while maintaining high detection accuracy. It supports multiple list sources and applies business and regional rules as part of a risk-based approach.

4) KYC and EDD – “Know Your Customer Plus”

KC+ is a risk-based KYC and Enhanced Due Diligence solution that helps banks structure customer information and calculate risk scores based on detailed customer attributes. Through configurable workflows and dynamic forms used during onboarding and throughout the customer lifecycle, the system evaluates client risk using advanced and configurable algorithms. This enables institutions to maintain greater control, accuracy, and flexibility in AML and compliance processes.

There are multiple deployment options available for implementing FCM with Temenos T24. If your organization is planning to implement FCM or looking to optimize existing compliance processes, feel free to contact Performetriks. Our specialists are ready to help you strengthen your financial crime mitigation capabilities and support your regulatory compliance initiatives.

Happy Performance Engineering!

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