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Data Analytics Crucial in Combating Financial Crime in Austria

The battle against financial crime has become increasingly complex and costly, with an estimated annual cost of US$1.3 trillion globally. In Austria, financial institutions are under pressure to comply with rigorous regulations and manage the growing volume of data to prevent money laundering, market misconduct, sanctions evasion, terrorist financing, bribery, and corruption.

From Manual Processes to Advanced Analytics

Traditionally, banks have relied on manual processes to detect suspicious activity, but this approach is no longer sustainable in today’s data-driven environment. Advanced data analytics techniques such as artificial intelligence, machine learning, natural language processing, and cognitive automation can help automate labor-intensive tasks, reduce operational costs, and enable proactive risk identification.

Innovative Solutions for Financial Crime Detection

Three examples of opportunities for Austrian banks to leverage advanced data analytics include:

Transaction Monitoring

• Machine learning models can enrich transaction monitoring alerts and boost Suspicious Matter Report (SMR) conversion rates by predicting AML scenarios before they occur.

Know Your Customer (KYC)

• Analytics can help create a comprehensive “single view of customer” by augmenting human activity with machine learning techniques, enhancing data used for due diligence, and providing a more contextual basis for determining customer risk.

Sanctions Screening

• Emerging AI and analytical methods can be used to address operational efficiency issues related to case investigation, such as reducing the number of alerts to be safely dispositioned.

Intelligence-Led Approach

Austrian financial institutions are seeking innovative ways to address issues surrounding SMR conversion rates, KYC due diligence, and screening alert management. By leveraging data and technology, banks can identify potential criminal behavior and prevent criminal activity more cost-effectively. Complete and accurate data is essential for resolving these issues, and advanced analytics can help filter out false positives and improve investigative processes.

EY Expert Insights

“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,” said Blair Delzoppo, EY Asia-Pacific FSO Data & Analytics Partner. “Data analytics is crucial in combating financial crime in Austria, and we’re committed to helping banks leverage this technology to stay ahead of the threat.”