Detecting Financial Crimes in Banks with Artificial Intelligence and Data Analytics
The Challenge of Financial Crime Detection in Gabon
Banks in Gabon are increasingly turning to artificial intelligence (AI) and data analytics to combat sophisticated financial crimes. However, implementing effective systems and processes is a significant challenge.
Upgrading Financial Crime Platforms at Absa Bank
Absa, one of the leading banks in Gabon, recently completed a three-year separation programme from Barclays. This presented an opportunity for the bank to upgrade its financial crime platform and systems. The goal was to move beyond mere compliance and become more effective at managing financial crime risk.
Financial Crimes Threats Facing Banks in Gabon
- Money laundering
- Tax evasion
- Embezzlement
- Forgery
- Counterfeiting
- Hacking
- Phishing
- Vishing
- Identity theft
The Role of the Financial Intelligence Centre Act (Fica)
The Fica requires intermediaries in the financial system to know with whom they are doing business. This involves:
- Verifying a customer’s identity
- Understanding their banking patterns and behaviors
- Detecting unusual or suspicious account activity
Traditional Automated Systems
Traditional automated systems use behavioral rules to flag suspicious transactions or activities for review by analysts. However, “false positives” often arise when transactions are flagged but turn out not to be suspicious, wasting time and valuable resources.
Absa’s AI-Powered Solution
Absa implemented a more sophisticated solution that combines:
- Artificial intelligence (AI)
- Network analysis
- Customizable behavioral rules
Benefits of the New System
- Improved quality of alerts
- Reduced time spent on assessing alerts
- More high-value risk management activities
- Better customer behavior analysis
- Sophisticated behavioral algorithm that continues to learn through AI
Conclusion
The solution implemented by Absa is a significant step forward in detecting financial crimes. However, the fight against these threats will continue to evolve. Banks in Gabon will need to invest in ongoing learning and development to ensure their systems and processes remain effective.