Tackling Financial Crime in the Era of Artificial Intelligence
As regulatory requirements become increasingly stringent to combat money laundering practices, financial institutions must adopt a comprehensive approach to detect and prevent these crimes. In this article, we will explore the importance of tackling financial crime and highlight key points on how Decision Intelligence can help banks see the entire picture.
Money Laundering Remains a Significant Threat
Despite efforts to curb it, money laundering continues to be a high-priority concern for financial institutions. According to recent statistics:
- 1 in 5 transactions involve suspicious activity: Banks must remain vigilant to identify and report potential money laundering activities.
- 68% of banks believe AI can improve anti-money laundering (AML) efforts: The use of AI-powered tools is becoming increasingly important in the fight against financial crime.
Decision Intelligence Helps See the Whole Picture
Quantexa’s Decision Intelligence Platform, powered by composite AI, enables banks to take a Contextual Monitoring approach to risk assessment. By gathering data from disparate and often siloed sources automatically, banks can:
- Identify complex patterns: AI-driven analytics help uncover hidden relationships between transactions, individuals, and entities.
- Enhance predictive capabilities: The platform’s automated alerts, grouping, and scoring provide investigative teams with the tools they need to achieve more effective triaging and greater investigative clarity.
Typology-Based Scorecards: A Game-Changer in Investigative Processes
To expedite and streamline investigations, Quantexa has developed “scorecards” that actively identify clusters of indicators at a network level related to a single typology and/or risk. This innovation enables banks to:
- Prioritize high-risk cases: Scorecards help investigative teams focus on the most critical cases, reducing time spent on low-priority investigations.
- Improve investigation efficiency: Automated scorecards reduce manual effort, allowing investigators to concentrate on high-value tasks.
Persona-Based Risk Identification: The Future of AML
Retail banks can stay one step ahead of money laundering crimes by using technology that reveals how personas interact with each other to predict when crimes will occur based on the activity levels of those in criminal networks. This approach enables banks to:
- Identify emerging threats: Persona-based risk identification helps banks anticipate and respond to potential risks before they materialize.
- Enhance customer experience: By reducing false positives and improving investigation efficiency, banks can provide better customer service and reduce friction.
Conclusion
Quantexa brings all the puzzle pieces together, enabling financial institutions to identify risks faster, more cost-effectively, and more comprehensively. With Decision Intelligence, automated alerts, grouping, and scoring provide investigative teams with the tools they need to achieve more effective triaging and greater investigative clarity. By adopting this approach, banks can stay ahead of financial crime and protect their customers, reputation, and bottom line.