SYSTEMS AND METHODS FOR SCREENING PAYMENT TRANSACTIONS

• US 20110270756A1
• Filed: 03/18/2011
• Published: 11/03/2011
• Est. Priority Date: 04/30/2010
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Kennedy, Kate J., Chace, Justin Mason, French, Susan J., Norris, Mark, Tullis, John, Shastry, Vishwanath
• Granted Patent: US 8,296,232 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Methods and systems for anti money laundering screening are provided. A risk score and a first validation code is determined based on information related to a funds transfer transaction. The first validation code is associated with the risk score. Thereafter, a second validation code is calculated and compared with the first validation code. The risk score and the validation score are included in a payment authorization message sent to a payment processing network. The payment processing network extracts the validation code and communicates the payment authorization message including the risk score to a receiving financial institution. The receiving financial entity accepts or denies the incoming funds transfer based on the risk score included in the payment authorization message.

Claims

1. A computer-implemented method comprising:

receiving, by a payment processing network server, from a sending financial institution, information about a first set of attributes associated with a sending entity and a second set of attributes associated with a receiving entity for a money transfer transaction;

searching, by the payment processing network server, a database to determine whether one or more attributes from the first set of attributes or the second set of attributes correspond to information in the database;

determining, by the payment processing network server, a risk score for the money transfer transaction based on the searching;

communicating, by the payment processing network server, the risk score to the sending financial institution;

receiving, by the payment processing network server, from the sending financial institution, a payment authorization message associated with the money transfer transaction, the payment authorization message including the risk score;

communicating, by the payment processing network server, the payment authorization message including the risk score to a receiving financial institution.

2. The method of claim 1 further comprising:

determining, by the payment processing network server, a first validation code and associating the first validation code with the risk score;

communicating, by the payment processing network server, the validation code to the sending financial institution;

receiving, by the payment processing network server, the first validation code as part of the payment authorization message;

calculating, by the payment processing network server, a second validation code based at least in part on the information in the payment authorization message;

determining, by the payment processing network server, whether the second validation code is the same as the first validation code; and

if the second validation code is same as the first validation code, extracting, by the payment processing network server, the first validation code from the payment authorization message and sending the payment authorization message to the receiving financial institution.

3. The method of claim 1 wherein the set of attributes of the sending entity comprises name, address, identification number, and country of residence.

4. The method of claim 1 wherein the database includes information received from one or more of Office of Foreign Assets Control (OFAC), US department of Commerce, the White House, US regulatory actions, and information provided by government and non-government entities outside the United States.

5. The method of claim 1 wherein the risk score is indicative of a percentage match between the one or more attributes of the sending entity or the receiving entity and information in the database.

6. The method of claim 1 wherein each attribute from the set of attributes is weighted differently from each other and the method further comprises determining an individual risk score for each of the attributes from the set of attributes.

7. The method of claim 6 wherein determining the risk score comprises determining a combined risk score based on the weight assigned to each attribute and the individual risk score of each attribute.

8. The method of claim 1 wherein determining a first validation code further comprises applying a validation algorithm to a fixed set of attributes.

9. The method of claim 8 wherein the fixed set of attributes comprises name of the sending entity, country code of the sending entity, the risk score, account number of the receiving entity, and a transaction ID associated with the money transfer.

10. The method of claim 1 further comprising receiving a response message from the receiving financial institution indicating whether the money transfer was accepted or denied, wherein the receiving financial institution generates the response based at least in part on the risk score.

22. A computer-readable non-transitory storage medium storing instructions that when executed by a processor in a computer system cause the processor to perform the method of claim 1.

11. A computer server comprising:

a processor;

a memory coupled with the processor, wherein the memory includes a database;

an analysis module coupled with the processor; and

a network interface module coupled with the memory and the processor, the network interface module configured to communicate with one or more external systems,

wherein the processor is configured to;

receive, from a sending financial institution, information about a set of attributes associated with a sending entity and information about a set of attributes associated a receiving entity;

query the database to determine whether one or more attributes from the set of attributes associated with the sending entity or the receiving entity correspond to information in the database;

calculate a risk score for a money transfer transaction between the sending entity and the receiving entity based on the determination;

determine a first validation code for the money transfer transaction;

associate the first validation code with the risk score;

communicate the risk score and the first validation code to the sending financial institution;

receive, from the sending financial institution, a payment authorization message associated with the money transfer transaction, the payment authorization message including the risk score and the first validation code; and

communicate, using the network interface module, the payment authorization message including the risk score to a receiving financial institution.

12. The computer server of claim 11 wherein the analysis module includes a rules engine that stores a first set of criteria received from the sending financial institution and a second set of criteria received from the receiving financial institution, wherein the first set of criteria or the second set of criteria are used in determining the risk score.

13. The computer server of claim 11 wherein the set of attributes of the sending entity comprises at least one of a name, an identification number, and country of residence.

14. The computer server of claim 11 wherein the database comprises information received from one or more external sources, the one or more external sources including:

Office of Foreign Assets Control (OFAC);

U.S. Commerce Department;

U.S. White House;

U.S. regulatory actions;

a foreign government;

U.S. state regulatory enforcement actions;

international regulatory enforcement actions;

a list of politically connected individuals and military leaders;

a list of U.S. and international organized crime members and affiliates;

financial Action Task Force (FATF);

a list of recognized high risk countries; and

court records.

15. The computer server of claim 11 wherein the risk score is indicative of a percentage match between the information received from the sending financial institution and information in the database.

16. The computer server of claim 15 wherein the risk score ranges between 0% and 100%.

17. The computer server of claim 11 wherein the processor is further configured to:

calculate a second validation code based on information in the payment authorization message;

determine whether the first validation code is same as the second validation code; and

if the first validation code is same as the second validation code, extract the first validation code from the payment authorization message prior to sending the payment authorization message to the receiving financial institution.

18. A method for funds transfer comprising, by a receiving financial institution:

receiving, from a sending financial institution, a payment authorization message indicating an incoming funds transfer, the payment authorization message including a risk score associated with the funds transfer; and

determining whether to accept or deny the incoming funds transfer based at least in part on the risk score.

19. The method of claim 18 further comprising communicating a response message to the sending financial institution, the response message indicative of one of acceptance of the funds transfer, denial of the funds transfer, or request for additional information from the sending financial institution.

20. The method of claim 18 wherein determining whether to accept or deny the incoming funds transfer comprises:

comparing the risk score with a threshold value;

determining whether the risk score is above or below the threshold value;

allowing the transaction if the risk score is lower than the threshold value and denying the transaction if the risk score is higher than the threshold value.

21. The method of claim 18 further comprising sending a message to the sending financial institution requesting addition information;

and

determining whether to accept or deny the incoming funds transfer based on the additional information received from the sending financial institution.