- Customer Success Story -

BANCO PAULISTA Adopts Risk-Based Approach to AML Compliance, Aligning with Central Bank Regulations

Sao Paulo, Brazil


Banco Paulista Successfully Meets Central Bank Regulations for Money Laundering Prevention and Financial Risk Management

Case Study Intro: Amidst the rigorous terrain of banking regulations, Banco Paulista stands out as a paragon of compliance excellence. Charged with fulfilling the Central Bank’s exacting requirements delineated in chapters 3461 and 3380, the institution not only achieved compliance but surpassed expectations. Through seamless integration of Arbutus Analyzer into its operations, Banco Paulista not only upheld regulatory standards but also solidified its role as a reliable guardian of financial integrity.

Customer Profile: Established in 1990, BANCO PAULISTA stands as a trusted Multiple Bank, committed to delivering top-tier financial solutions adhering to the highest standards of corporate governance. Catering to Financial Institutions, it provides essential services including Clearinghouse Membership, Financial Settlement, and Bond and Securities Custody. 


Challenges Faced by Banco Paulista in AML Compliance

As an institution committed to financial integrity, Banco Paulista encountered several challenges while striving to prevent money laundering by its clients. Here’s a closer look at their journey:

  1. Regulatory Demands and Objectivity:

    • The Central Bank imposed stringent requirements on data evaluation and financial operations.
    • Objective compliance was essential, necessitating precise controls and criteria.

  2. Market Solutions vs. Regulatory Rules:

    • Banco Paulista recognized that off-the-shelf market solutions might not align perfectly with regulatory agency rules.
    • Acquiring solutions committed to compliance was crucial, but not all options met the mark.

  3. Search for an Effective Solution:

    • The institution embarked on a quest to find a solution that would seamlessly meet the financial regulator’s demands.
    • Their existing audit analytics software fell short, prompting a thorough search.

  4. Exploring Alternatives:

    • 'Arbutus Analytics' and SAS were among the multiple audit analytics software considered.
    • The goal: finding a tool that would enhance AML prevention and customer behavior evaluation.

Solution:  Custom Analytics with Arbutus at Banco Paulista

As Banco Paulista evaluated the Arbutus platform, a revelation emerged: the power to create bespoke tests that catered to regulatory agencies and facilitated corporate-level metrics. Arbutus’ inherent flexibility allowed the bank to craft custom analytics tailored to its distinct internal processes.

This strategic alignment empowered Banco Paulista to navigate compliance challenges with precision and agility. 


Here are the specific features that proved crucial:

Advanced Data Analytics: Arbutus Analyzer empowered the bank to perform in-depth data analysis across its financial operations. By scrutinizing transactional data, it identified patterns, anomalies, and potential risks associated with money laundering.

  1. Automated Monitoring: The tool automatically monitored transactions, flagging suspicious activities based on predefined rules. This real-time surveillance allowed Banco Paulista to promptly address any irregularities.

  2. Risk-Based Approach: Arbutus Analyzer facilitated a risk-based approach to compliance. It allowed the bank to allocate resources efficiently by focusing on high-risk areas, ensuring effective risk management.

  3. Customizable Rules: The flexibility to create custom rules tailored to Banco Paulista’s specific needs was invaluable. Whether tracking large transactions or unusual patterns, the tool adapted seamlessly.

  4. Audit Trail and Documentation: The tool maintained a comprehensive audit trail, enabling transparency and accountability. Banco Paulista could demonstrate compliance to regulators through detailed documentation.

In summary, Arbutus Analyzer not only ensured adherence to AML regulations but also enhanced Banco Paulista’s overall risk management framework. Investing time and resources, Banco Paulista rapidly assessed each client’s transaction history. This enabled continuous, timely reporting to business and administrative management areas. The reports provided useful risk assessments during financial negotiations.

Key Benefits:

The measurable outcomes of implementing Arbutus Analyzer at Banco Paulista:

  1. Enhanced Efficiency in AML Monitoring:

    • Streamlined monitoring of financial transactions for suspicious activities.
    • Reduced false positives by customizing rules and thresholds.
  2. Timely Detection of Anomalies:

    • Real-time alerts for unusual patterns or transactions.
    • Early intervention in potential money laundering cases.
  3. Improved Compliance Reporting:

    • Comprehensive reports aiding regulatory compliance.
    • Audit trail documentation demonstrating adherence to AML regulations.
  4. Risk Mitigation and Reputation Enhancement:

    • Effective management of financial risks.
    • Proactive risk assessment reinforcing trust with clients and regulators.
  5. Cost Savings and Resource Allocation:

    • Focused efforts on high-risk areas.
    • Reduced manual effort through automation.

In summary, Arbutus Analyzer empowered Banco Paulista to meet regulatory demands while optimizing operations.

“The flexibility, Integration and a greater potential that the solution offers are the greatest benefits!”
Risk & Compliance Manager, Compliance Corporativo, Banco Paulista

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