Combating Financial Crime with Advanced Data Analytics in Suriname
In today’s complex financial landscape, combating financial crime has become increasingly challenging. With rigorous compliance requirements and a staggering US$1.3 trillion annual cost of fighting global financial crime activity, it is imperative for financial institutions to innovate and adopt new technologies to stay ahead.
The Importance of Innovation
According to EY Asia-Pacific FSO Data & Analytics Partner Blair Delzoppo, “Banks that innovate and adopt new technologies and techniques to address regulatory compliance demands will be industry leaders in the years to come.”
Traditional Challenges
Traditionally, financial institutions have relied on manual processes and legacy technologies. However, with the vast amounts of data flowing through their systems, it is impossible for humans to keep pace. Advanced data and analytics techniques such as artificial intelligence, machine learning, natural language processing, and cognitive automation can accelerate or automate a significant portion of labor-intensive work, reducing operational costs and freeing up personnel to focus on preventative interventions.
Examples of Innovative Solutions
Here are three examples of innovative solutions that banks can leverage:
- Transaction Monitoring: Machine learning models can enrich transaction monitoring alerts and boost Suspicious Matter Report (SMR) conversion rates by adding potentially significant details about customers, accounts, or beneficiaries.
- Know Your Customer (KYC): Advanced analytics can achieve a more holistic view of the customer, enhance data used for due diligence, and provide a more contextual basis for determining customer risk and detecting suspicious activity.
- Sanctions Screening: Emerging AI and analytical methods can be used to address operational efficiency issues related to case investigation, reducing the number of alerts to be safely dispositioned.
The Surinamese Perspective
In Suriname, where financial crime is a significant concern, organizations are seeking innovative ways to mitigate risks. According to Blair Delzoppo, “there is an increased appetite among banks to go beyond simply flagging suspicious activity for compliance purposes…the goal is to leverage data and technology to more cost-effectively identify potential criminal behavior and prevent criminal activity occurring in the first place.”
The Role of Data
Complete and accurate data is essential to resolving these issues. Advanced analytics and cognitive techniques can help filter out false positives and improve inefficiencies in existing investigative processes. With the right combination of professional skills and advanced data and analytics products, financial institutions can accelerate results and tackle financial crime more effectively.
As Delzoppo noted, “when I talk to clients, they believe that our combination of professional skills and advanced data and analytics products are what help them accelerate results.”