Artificial Intelligence Can Identify Absence of Normal Business Activity, Indicating Possible Risk of Financial Crime

Within financial services, transactional data and supplementary information are vital to the success of financial crime investigations. However, cases that lack typical business activities such as employee payroll or availability of freight receipts could be red flags that indicate possible financial crimes such as human trafficking or trade-based money laundering. Legacy, rules-based TMS engines won’t trigger alerts if normal business activities are not present because, simply, they can’t identify what they can’t see. On the […]

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AI-Based Link Analysis and Data Visualization Can Uncover Hidden Relationships Between Entities and Networks

Shell companies can serve legitimate and legal commercial purposes. However, there is considerable risk for criminals to abuse these vehicles for illicit activity. Whether it is money laundering, terrorist financing, drug trafficking, human trafficking, tax evasion, corruption, white-collar crime, or a myriad of other schemes, shell companies play a significant role in the efforts of transnational criminal organizations (TCOs) to make and move money. The news cycle often delivers stories about shell companies facilitating some […]

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The Role of Advanced Data Analytics and Artificial Intelligence in Mitigating Fraud Risk

Fraud-related offenses continue to pose a significant threat to our economy, as criminals seek to trick companies and citizens out of their hard-earned income. According to the FTC, there were more than 3.1 million consumer fraud complaints received in 2016. Organizations of all sizes, including financial institutions and corporations, must surmount various challenges and risks as a natural course of business, with fraud being one of the biggest. According to a 2016 global fraud study […]

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How AI Can Help Overcome Challenges in Correspondent Banking Relationships

The Financial Crimes Enforcement Network (FinCEN) recently levied a $2 million civil money penalty against a Southwest Border bank for willfully violating the Bank Secrecy Act (BSA). The bank failed to fulfill certain due diligence obligations in relation to its handling of the opening and maintenance of correspondent banking (CB) accounts. FinCEN’s Acting Director Jamal El-Hindi, stated: “The bank plainly failed to ask obvious due diligence questions in connection with its foreign bank account relationship, […]

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How Data Cleansing and Enrichment Can Improve the AML Process

Today’s financial institutions regularly collect, store, and maintain customer information in a series of files, systems and databases. Employees operating throughout the financial institution then update and use the data across various lines of business. These data manipulations result in a mix of redundant, non-standardized, incorrect and incomplete versions of the information spread throughout the financial institution. An anti-money laundering (AML) transaction monitoring system’s (TMS) ability to function efficiently depends heavily on a financial institution […]

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