E-CHOWKIDAR for PMLA Compliance

E-CHOWKIDAR is a powerful detection tool designed by the expert team of Xtremsoft Technologies, to help the financial sector easily monitor and detect suspicious activities. This tool helps generate alerts for trades, Demat account (DP) transactions and financial transactions. It also screens clients’ databases as per the Prevention of Money Laundering Act (PMLA) regulated by the Government of India. Additionally, it helps create reports for the Financial Intelligence Unit (FIU), meeting government requirements.

Main Features:

1. Client Screening

Automatically checks clients against both local and international databases to ensure compliance.

2. Trade Alerts

Alerts are created for unusual activity in various segments such as Equity, Futures & Options (F&O), Currency, and Commodities, including:

  • Artificial trading volume in liquid and illiquid stocks or contracts.
  • Comparison of a client’s financial strength with their payin/payout transactions.
  • Abnormal trading patterns (intraday or delivery).
  • Unusual activity in options contracts.
  • Large transactions from newly opened accounts.
  • Dormant accounts becoming active with high transaction volumes.
  • Small transactions in illiquid stocks at unusually high prices as against previous day’s closing.
  • Large accumulation of stocks at abnormal prices.
  • Single stocks traded under different client codes.
  • Circular trading patterns or trade reversals.
  • Implementation of pump-and-dump schemes

3. DP Transaction Alerts

Detects abnormal transactions in Demat accounts, both off-market and on-market.

4. Role-Based Access

Allows different departments to have customized access, letting them perform their specific tasks.

5. Admin Tools

Simplifies user management, log viewing, and offers basic (Level 1) user support.

6. Report Formats

Reports can be generated in Excel, PDF, and CSV formats for easy analysis and sharing.

System Operational Environment

  1. The system works on a client-server model, whether over the internet or a local network.
  2. Data is sent securely using TCP/IP, with encryption methods like PKI to keep it safe.
  3. To save on bandwidth, we compress the data before sending it.
  4. There are both test and production environments, so onboarding is smooth and hassle-free.
  5. It’s running 24/7, and we’ve set up automated restarts every night for maintenance.
  6. You can expect the deployment to take around 8 to 10 weeks, so it’s pretty quick to get up and running.

Support & Training

  1. A dedicated support team will provide technical assistance and Level 2 support.
  2. Training will be delivered using a “train-the-trainer” approach, ensuring key personnel are equipped to train others in the

    organization.

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