AML AND AI

Banks are implementing mechanisms to ensure compliance with money laundering and financial crime regulations. The problem is that many of the processes used to identify illicit transactions are inefficient and often rely on outdated technology – or lots of people.

Currently, transaction monitoring typically scrutinizes a limited data set and relies heavily on humans trained to spot red flags. Transactions are segmented by broad categories such as a client’s business type, location or risk level as determined by the bank, which allows significant data to fall through the cracks.

Our AI Anti Money Laundering Tool

We believe that artificial intelligence can help banks raise their game. Our company uses AI in the battle against financial crime. AI has two primary benefits for the banks engaged in this battle: it can increase the effectiveness and efficiency of financial crime investigations, and the institution’s risk management.

Our AI system dealt with transactions without regard for traditional categories. Instead, it analyzed transactions, observed patterns, and created new and more relevant segments, placing customers in them based on their behavior. A segment, for instance, might include entities that engage in large wire credit transactions, have high-frequency counterparties, and many unique originators.

Advantages of our AI-AML Tool

If a customer executed transactions that were outside of the normal parameters for their segment, they would be subject to further analysis, including, potentially, investigations by humans. In our experience, our machine-learning algorithms can help reduce the number of false reports by 20 to 30 percent. As a result, investigators can spend more time on high-risk cases, and the manual work required can be reduced by as much as 50%.

Additionally, our AI NLP platform employs intelligent document scanning and sifts through a vast array of external data sources, thereby enhancing KYC’s new client onboarding experience.