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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Impact of Artificial Intelligence on Financial Crime – What is Possible?

In previous posts, we’ve examined specific instances of how artificial intelligence (AI) could be used to thwart global financial crime, and how the use of AI-derived insights by financial institutions could dramatically improve their overall compliance programs. Preventing financial crimes will not only save the banking industry millions, if not billions, of dollars while keeping regulators happy, but it would save scores of lives and improve our global economy through the adoption of new technologies. […]

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Artificial Intelligence Can Help Financial Institutions Mitigate AML and KYC Risks

Around the globe, bribery, corruption and other financial crimes are continuing to increase in scale and diversity which have serious adverse effects on the worldwide economy. As recently reported by the press, the Monetary Authority of Singapore (MAS) and Indonesian banking regulators and agencies are investigating the suspicious transfer of approximately $1.4 billion USD in 2015. The transfers originated from private banking accounts from the island of Guernsey and ultimately terminated in Singapore accounts. The […]

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Making the Regulators More Comfortable with Artificial Intelligence

A leading argument for why financial institutions have not rushed to adapt or implement artificial intelligence (AI) into their current anti-money laundering (AML) compliance programs is the looming fear over how the regulators would react to the use of this emerging technology. To take the guess-work out of compliance, the discussion needs to shift from “why” the regulators should get on board with financial institutions using AI, to “how” AI can be implemented in a […]

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