The Role of Advanced Data Analytics and Artificial Intelligence in Mitigating Fraud Risk

Fraud-related offenses continue to pose a significant threat to our economy, as criminals seek to trick companies and citizens out of their hard-earned income. According to the FTC, there were more than 3.1 million consumer fraud complaints received in 2016. Organizations of all sizes, including financial institutions and corporations, must surmount various challenges and risks as a natural course of business, with fraud being one of the biggest. According to a 2016 global fraud study […]

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How AI Can Help Overcome Challenges in Correspondent Banking Relationships

The Financial Crimes Enforcement Network (FinCEN) recently levied a $2 million civil money penalty against a Southwest Border bank for willfully violating the Bank Secrecy Act (BSA). The bank failed to fulfill certain due diligence obligations in relation to its handling of the opening and maintenance of correspondent banking (CB) accounts. FinCEN’s Acting Director Jamal El-Hindi, stated: “The bank plainly failed to ask obvious due diligence questions in connection with its foreign bank account relationship, […]

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How Data Cleansing and Enrichment Can Improve the AML Process

Today’s financial institutions regularly collect, store, and maintain customer information in a series of files, systems and databases. Employees operating throughout the financial institution then update and use the data across various lines of business. These data manipulations result in a mix of redundant, non-standardized, incorrect and incomplete versions of the information spread throughout the financial institution. An anti-money laundering (AML) transaction monitoring system’s (TMS) ability to function efficiently depends heavily on a financial institution […]

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Impact of Artificial Intelligence on Financial Crime – What is Possible?

In previous posts, we’ve examined specific instances of how artificial intelligence (AI) could be used to thwart global financial crime, and how the use of AI-derived insights by financial institutions could dramatically improve their overall compliance programs. Preventing financial crimes will not only save the banking industry millions, if not billions, of dollars while keeping regulators happy, but it would save scores of lives and improve our global economy through the adoption of new technologies. […]

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Artificial Intelligence Can Help Financial Institutions Mitigate AML and KYC Risks

Around the globe, bribery, corruption and other financial crimes are continuing to increase in scale and diversity which have serious adverse effects on the worldwide economy. As recently reported by the press, the Monetary Authority of Singapore (MAS) and Indonesian banking regulators and agencies are investigating the suspicious transfer of approximately $1.4 billion USD in 2015. The transfers originated from private banking accounts from the island of Guernsey and ultimately terminated in Singapore accounts. The […]

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