Artificial Intelligence Can Assist the Government in Combating Drug Trafficking and Terrorism

The landscape of drug trafficking has drastically changed over the past two decades. Illicit drugs such as cocaine, methamphetamines, designer drugs, controlled prescription drugs, fentanyl and heroin continue to be trafficked throughout the world. Transnational Criminal Organizations (TCO) continue to control distribution networks into the United States; however, terrorist groups are now using drug trafficking as a funding mechanism. As partners in the fight against drug trafficking, financial institutions (FI) and FinTech companies providing innovative […]

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AI and Machine Learning Receives Recognition at FATF Forum as Effective Technologies in Fight Against Money Laundering

At the Financial Action Task Force’s (FATF) recent Private Sector Consultative Forum, the organization’s President, Mr. Juan Manuel Vega-Serrano, held discussions on the state of FinTech and RegTech.  Private sector participants shared their experiences and challenges in this area and highlighted that artificial intelligence (AI) and machine learning (ML) could assist with more effective monitoring and screening systems.  To highlight the importance of FinTech and RegTech, FATF will host an event in the United States […]

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AI Enhances Monitoring and Testing Capabilities of the Chief Compliance Officer

A financial institution’s (FIs) monitoring and testing (M&T) team, which typically resides within the compliance department, is the Chief Compliance Officer’s (CCO) early warning system for compliance risks that are on the horizon. M&T and internal audit often work together to test various aspects of an FIs’ daily operations including, but not limited to: Regulatory change; Transaction monitoring; AML investigation; Regulatory reporting; KYC requirements; Adverse media monitoring for customers; Data governance; Above the Line (ATL) […]

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AI Supplements Transaction Monitoring Systems for Better AML Outcomes

The front line of the fight against money laundering and financial crime includes AML investigators and analysts, government investigators, regulators, and the companies that are developing innovative technologies to combat financial crime.  Together, this collaborative team is better able to stop money laundering by implementing solutions such as artificial intelligence (AI) and machine learning for enhanced monitoring, investigation and KYC. Traditional transaction monitoring (TM) systems are a necessity in the financial industry.  Financial institutions (FIs) […]

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Artificial Intelligence Identifies When Bank’s Internal Controls Are Failing for AML and Other Regulatory Requirements

The Financial Crimes Enforcement Network (FinCEN) recently assessed a $7 million civil monetary penalty (CMP) against a California-based bank for willful violations of several provisions of the Bank Secrecy Act (BSA).  Simultaneously, the bank’s primary regulator, the Office of the Comptroller of the Currency (OCC) assessed a $1 million CMP against the bank based on the OCC’s discovery that the bank was deficient in its compliance to a previously established consent order. The bank was […]

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QuantaVerse Recognized as 2017 Enterprise Awards Technology Finalist

On the heels of the honors QuantaVerse received at the IMPACT 2016 Capital Conference where the company took home the “People’s Choice Award” and was one of three companies out of 200 selected to pitch to a notable panel of investors, QuantaVerse was recently named a finalist for the 2017 PACT Enterprise Awards, the region’s most prestigious business honors for technology and life sciences companies, leaders, and entrepreneurs. QuantaVerse will be competing for this prestigious […]

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FATF Calls Out Non-Banks as Weak Links in Anti-Money Laundering Efforts

This week, the Financial Action Task Force (FATF) issued a report assessing the United States’ Anti-Money Laundering (AML) and Combating of Terrorist Financing (CTF) progress. The report specifically called out gaps that exist in regulatory oversight for non-banks such as casinos, investment firms, lawyers, accountants and other related entities. FATF is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of […]

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OCC Issues De-Risking Guide and Best Practices to Banks

We recently wrote about the issue of banks de-risking by exiting relationships with customers in high risk or exiting entire lines of business. Here at QuantaVerse, we oppose de-risking for several reasons such as: Leads to loss of valuable revenue streams; Invites regulatory scrutiny by abandoning jurisdictions and business lines, and; Creates the perception that the de-risking bank has inadequate risk mitigation tools to distinguish between honest customers and criminal ventures. Now, the Office of […]

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Data Science and Artificial Intelligence: Practical Solution to FinCEN’s “Fifth Pillar” of Anti-Money Laundering Compliance

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued its Final Rule for Customer Due Diligence (CDD) under the Bank Secrecy Act (BSA) for banks and other covered financial institutions on May 11, 2016. The Final Rule, effective July 11, 2016, is designed to formalize new and existing customer due diligence (CDD) requirements. The Final Rule codified four anti-money laundering (AML) provisions or “pillars” found in Section 352 of the USA Patriot […]

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Turn the Tables on Financial Criminals with Data Science

I’ve worked in the financial services industry for many years and I know that potentially regulatory penalties aside, no bank wants to be used by financial criminals to further their illegal and immoral money laundering schemes. I’ve also seen over the years how banks have been early adopters and innovative users of various types of information technology to optimize their transaction processing and record keeping capabilities, and to power their marketing programs. So it’s a […]

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