Fortent, a new firm created to deliver a suite of risk and compliance solutions to financial institutions, has been backed by global private equity house Warburg Pincus.
Fortent combines Searchspace, an anti-money laundering solution, and Semagix, a customer and due diligence product, into a single brand. Searchspace and Semagix will retain their names as product brands under Fortent.
Terms of the transaction were not disclosed.
In the wake of 9/11 and other terrorist activity around the globe, regulators have increased the pressure on financial institutions to stem the flow of money laundering and address the estimated $500bn to $1tr of dirty money slipping through the world’s financial markets each year.
With the increase of law enforcement and the wide range of new requirements of the US Patriot Act and Bank Secrecy Act, financial institutions are in a rapidly changing regulatory environment which exposes them to reputational, operational, and financial risks, as well as potential criminal charges.
Fortent also provides fraud management solutions that identify unusual and suspicious behaviour, targeting risk that directly affects a company’s bottom line. In addition, this fall Fortent said it intends to launch a subscription-based news and information service addressing regulatory developments.
Fortent’s management team includes Sandy Jaffee from Warburg Pincus, Tony Terracciano, Mimi Strouse from Warburg Pincus, Rich Green from Sun Microsystems, James Neary a managing directory at Warburg Pincus and Peter J Wallison former White House counsel and general counsel to the US Treasury Department.
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