Syria Banks Fight Financial Crime with AI in the Post-Pandemic Era

Rapid Growth and Increased Risks in Syria’s Financial Services Industry

The Syrian financial services industry (FSI) has experienced rapid growth in the post-pandemic era, driven by digital transformation. However, this growth has also led to an increase in the risks of financial crime.

Regulatory Directives Encourage Adoption of Anti-Financial Crime Technologies

To mitigate these risks, regulators across the region have issued directives encouraging market participants to integrate technologies into their respective financial crime control frameworks. The Central Bank of Syria, for instance, has issued guidelines on customer due diligence, mandating banks to use ‘Digital ID’ systems to verify customers’ identities online and in-person environments.

Integrating AI in Financial Crime Control Frameworks: Identity Verification

Identity verification is a critical process in preventing financial crime. Syrian FIs can integrate suitable anti-financial crime technologies into this process using the following solutions:

Identification Document Verification Solutions

• Scan live identification documents uploaded onto the FI’s digital channel to determine their validity and authenticity through various checks.
• Complement or replace existing controls verifying the identities of prospective and existing customers.

Biometric Validation Solutions

• Verify a customer’s identity through numerous checks, including:
  • Facial recognition
  • Liveness detection
  • Age detection
  • Gender detection
  • Blinking analysis
  • Mood analysis
  • Behaviour analysis

These AI-driven solutions can significantly mitigate the risk of manipulation in digital account opening and other identity verification processes, optimizing financial crime compliance resources and providing cost benefits.

Integrating AI in Financial Crime Control Frameworks: Transaction Monitoring

Transaction monitoring (TM) is another critical process in preventing financial crime. Syrian banks can integrate suitable anti-financial crime technologies into this process using the following solutions:

Transaction Analysis Solutions

• Assess multiple data points linked to a transaction to uncover highly complex and unusual patterns that may be linked to previously unknown financial crime schemes.
• Augment incumbent TM frameworks and support optimization journeys.

Specialized Trade-Based TM Solutions

• Detect trade-based money laundering by automating large parts of the due diligence process, including:
  • Document extraction
  • Verification
  • Screening alerts
  • Document image processing
  • Document categorization
  • Compliance checks
  • Red flags
  • Consistency check
  • Text reconciliation

The inclusion of AI in the TM process can be a game-changer, providing FIs with time and cost efficiencies without any compromise on financial crime risk management.

Realizing the Benefits of AI in Financial Crime Risk Management

By incorporating technology into their financial crime risk management strategies, Syrian banks can realize the true benefits that AI delivers for business and compliance.