Systems and method for screening payment transactions

• US 8,170,953 B1
• Filed: 03/18/2011
• Issued: 05/01/2012
• Est. Priority Date: 03/18/2011
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Tullis, John, Norris, Mark, Shastry, Vishwanath, Kennedy, Kate J., Chace, Justin Mason, French, Susan
• Primary Examiner(s): ROSEN, ELIZABETH H
• Application Number:
  US13/051,993
• Time in Patent Office: 410 Days
• Field of Search: 705/35, 705/38, 705/39, 705/75, 705/77
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Methods and systems for anti money laundering screening are provided. The method includes determining a risk score and a first validation code associated with the risk score, based on information related to a funds transfer transaction and independently calculating a second validation code and comparing with the first validation code. The method further includes including the risk score and the validation score in a payment authorization message. 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 method for a money transfer transaction comprising:

receiving, by a payment processing network server computer, from a sending financial institution, information about a set of attributes associated with a sending entity;

receiving, by the payment processing network server computer, from the sending financial institution, information about a set of attributes associated with a receiving entity;

searching, by the payment processing network server computer, a 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;

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

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

communicating, by the payment processing network server computer, the risk score and the first validation code to the sending financial institution;

receiving, by the payment processing network server computer, from the sending financial institution, a payment authorization message associated with the money transfer transaction, the payment authorization message including the risk score, the set of attributes associated with the sending entity, the set of attributes associated with the receiving entity, and the first validation code;

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

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

extracting, by the payment processing network server computer, the first validation code from the payment authorization message; and

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

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

3. 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.

4. 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.

5. 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.

6. The method of claim 5 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.

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

8. The method of claim 7 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.

9. 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.

10. A computer server comprising:

a processor;

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

an analysis module coupled to the processor; and

a network interface module coupled to 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 with 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 based on the determination;

determine a first validation code and 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, the set of attributes associated with the sending entity, the set of attributes associated with the receiving entity, and the first validation code;

calculate a second validation code based at least in part on the information in the payment authorization message other than the first validation code;

determine that the second validation code is the same as the first validation code;

extract the first validation code from the payment authorization message; and

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

11. The computer server of claim 10 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.

12. The computer server of claim 10 wherein the set of attributes of the sending entity comprises at least one of a name, an identification number, and country of residence.

13. The computer server of claim 10 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.

14. The computer server of claim 10 wherein the risk score is indicative of a percentage match between the information received from the sending financial institution and information in the database.

15. The computer server of claim 14 wherein the risk score ranges between 0% and 100%.