In The News
Financial IT, December 17, 2020
QuantaVerse, which uses AI and machine learning to automate financial crime identification and investigations, finished 2020 well-positioned for continued growth in 2021 due to its dedicated focus on solving AML challenges and a commitment to innovation. In 2020, QuantaVerse introduced a series of technology enhancements to its AI-powered Financial Crime Platform.
Benzinga, December 17, 2020
Legacy anti-money laundering (AML) technologies — transaction monitoring systems — historically generate about a 95% false-positive rate. That’s according to David McLaughlin, who founded QuantaVerse in 2014 to help institutions identify, stop and prevent financial crimes. “There’s a huge false-positive rate, and every alert with a traditional TMS has to be investigated by a human,” he said. “It’s a very manual process, with lots of unfulfilling work.”
FinTech Global, December 2020
The RegTech 100 is an annual list of 100 of the world’s most innovative RegTech companies selected by a panel of industry experts and analysts. These are the companies every financial institution needs to know about as they consider and develop their mission critical RegTech and digital transformation strategies.
FinOps Report, November 17, 2020
AML managers at US banks using QuantaVerse’s financial crime platform will no longer have to manually search through the Internet and databases to complete mandated entity risk reviews. The QuantaVerse platform will search for adverse media, jurisdictions, transactional relationships and typologies that indicate the potential for money laundering. By reviewing the QuantaVerse high-risk report generated by the platform AML managers can more quickly comply with the requirements of federal banking regulators to review all high-risk customers annually.
The Paypers, November 5, 2020
The QuantaVerse High-Risk Entity Report documents risk discovered by the QuantaVerse AI Financial Crime Platform. The platform automates the research work required to assess entity risk, such as adverse media, jurisdiction, transactional relationships, typologies that indicate potential money laundering, and more.
FinTech Finance, September 10, 2020
Risk scores presented in the FCIR are derived by the QuantaVerse decision engine, a nonrecurrent neural network that interprets observables (such as line of business, adverse media, jurisdiction, entity type, etc.) and makes accurate determinations on risks. QuantaVerse recently applied Local Interpretable Model-Agnostic Explanations, or “LIME,” to further validate risk scores presented in the FCIR.
QuantaVerse boosts its Financial Crime Investigation Report
The Paypers, September 10, 2020
QuantaVerse has boosted its Financial Crime Investigation Report (FCIR) so AML cases can be adjudicated more efficiently. The QuantaVerse FCIR, which meets requirements for properly documenting, explaining, and detailing AML investigations, presents the findings of the QuantaVerse Financial Crime Platform.
QuantaVerse Enhances Financial Crime Investigation Report Tool
Corporate Compliance Insights, September 9, 2020
QuantaVerse enhanced its Financial Crime Investigation Report (FCIR) so AML cases can be accurately adjudicated more efficiently than ever before. Among other critical information, the QuantaVerse FCIR presents investigators an at-a-glance analysis of transactional relationships, negative news and money laundering typologies along with risk scores calculated by the QuantaVerse machine learning engine and narratives needed to clear a case or document a suspicious activity report (SAR) submission.
QuantaVerse Adds Interpretable Machine Learning to Enrich AML Risk Determinations
Financial IT, September 9, 2020
By automating financial crime research and presenting the critical findings in these reports, QuantaVerse has helped reduce by up to 80 percent the time that investigators spend gathering facts and summarizing their research into SARs.
Automation as Compliance Response to COVID-19
Compliance Podcast Network, June 18, 2020
In this episode, we consider some of the top questions QuantaVerse is hearing its clients; some of the top challenges financial institutions are facing during the coronavirus health crisis; how the reporting obligations of financial institutions impacted by the pandemic and the types of solutions that a financial institution can bring to bear at this point in time. We conclude with a discussion of how a financial institution can automate industry best practices when conducting an investigation, through the QuantaVerse Alert Investigator for financial institutions.
Aite Group: “Anti-Money Laundering in the Cloud. Are We There Yet?”
Aite Group, June 4, 2020
Although there are clear benefits to the cloud, financial institutions have been reluctant to adopt a full cloud model, citing concerns regarding the security and location of customer data and processes. The use of the cloud is slowly becoming more widespread within financial services, but adoption for AML depends on the size of the institution and moves through a series of steps, from an on-premises solution to data lakes, to private clouds, and finally to AML as a service. This report examines the current state of AML in the cloud, describes the different options, and provides a review of the vendor offerings and their use by FIs. Based on Aite Group’s interviews of 25 FIs and AML software vendors during March and April 2020, it highlights some of the considerations for the adoption and use of cloud computing.
Celent Briefing Note: “QuantaVerse Alert Investigator – Compliance Automation To Overcome Resource Shortage During COVID-19 and Beyond”
Celent, June 2, 2020
COVID-19 is prompting dramatic shifts in customer behavior as they exponentially increase the use of digital and remote channels for regular purchases and financial transactions. Rapidly evolving crisis situations like this provide fertile ground for financial criminals who take advantage of the uncertainties and vulnerabilities in the system to commit frauds for personal financial gains, and funnel the illicit proceeds into money laundering, terrorism financing, and other nefarious acts. Financial institutions (FIs) must remain vigilant and guard against the elevated financial crime risks at a time when their internal operations are disrupted due to the need for social distancing. Compliance processes at many FIs are not designed to support remote work at a large scale; worse, many parts of compliance operations are not automated, needing significant manual efforts that slow down client onboarding, transaction processing, and cause huge backlogs of cases. QuantaVerse, a provider of artificial intelligence (AI) powered anti-money laundering (AML) technology solutions, has launched a new adaptation of its QuantaVerse Alert Investigator solution that is intended to automate alert investigation and business continuity for banks impacted by COVID-19.
Special ACFCS Video Financial Crimecast: QuantaVerse CEO David McLaughlin talks AI, AML and compliance in a time of coronavirus
ACFCS, May 22, 2020
As a point of context, the combined might of FinCrime compliance professionals, regulators, investigators and auditors – the four pillars of the world’s counter-crime edifice – only capture a fraction of a percent of the trillions of dollars in illicit finance that flow around the globe. One way to look at this is that as a community we have a long way to go because the criminals are mostly winning. A counterpoint perspective: that also means there are massive areas for improvement – something AI can, and already is, helping to improve in the areas of efficiency, effectiveness and results.
How the pandemic has affected corporate compliance teams
Global Investigations Review, May 22, 2020
Some financial institutions have hired compliance technology consultancies because the pandemic has exposed vulnerabilities in their old compliance methods, said David McLaughlin, who runs artificial intelligence compliance firm QuantaVerse. “It’s been put right in front of their face the vulnerability of the human workforce,” he said. Banks have been asking his company to build contingency plans to use technology to step in and make up for a staff shortfall, if needed, he said. “Once we are out of the crisis, it will become a part of their compliance,” McLaughlin said, when discussing the long-term implications.
Software Fills In For India-Based Compliance Teams In COVID-19 Lockdown
Forbes, April 27, 2020
The COVID-19 crisis has exposed a lot of unfamiliar reliance on globalization and outsourcing, but regulatory compliance? With India on a severe lockdown, banks that had outsourced a lot of their compliance work to India find it can’t be done — the staff can’t go into the office and often the internet is too weak to support work from home. QuantaVerse, in the business of preventing fraud and money laundering, offers cloud-based tools that can be turned on to supplement U.S.-based compliance staff until the Indian team is back at work.
10 RegTech Companies Whose Services Can Help You Through the Coronavirus Crisis
FinTech Global, April 27, 2020
QuantaVerse is offering its alert investigator to financial institutions during the coronavirus pandemic to help them investigate potential financial crimes. The RegTech provider is releasing the service to help financial institutions which may face emergency shortages of financial crime investigators due to the current situation. The idea is that this will help them keep up with their regulatory requirements and ensure transactions and trades continue to operate even with less staff.
QuantaVerse Expands Capabilities of AI-Powered Financial Crime Platform with New Enhancements
Inside Big Data, April 22, 2020
QuantaVerse, the company offering an end-to-end financial crime platform that uses AI and machine learning to automate the majority of the AML investigation process, announced new enhancements to its AI Financial Crime Platform. These capabilities were delivered to help QuantaVerse customers reduce overall AML compliance costs by automating time-consuming investigative tasks and finding criminality faster and more accurately.
Coronavirus Plagues AML Compliance Managers
FinOps Report, April 9, 2020
The new coronavirus pandemic is testing the ability of anti-money laundering (AML) analysts and compliance managers to adjust their methodologies and technology quickly enough to catch criminal activity.
How artificial intelligence is transforming the global battle against human trafficking
Fox News, September 27, 2019
QuantaVerse CEO and founder David McLaughlin said that while small steps are having a significant impact, there is much more that can be done. Artificial intelligence can follow the money created by human trafficking operations. That means that instead of identifying only lower-level human traffickers, the “beneficial owners” or kingpins of these operations can be discovered, he said.
Thinking Outside the Black Box: Why AI in AML makes sense.
Bank News, January 11, 2019
Recently, federal regulatory agencies issued a joint statement that, boiled down, encourages financial institutions to take advantage of the possibilities artificial intelligence (among other new technologies) might offer banks in meeting their Bank Secrecy Act/anti-money laundering compliance requirements.
How a Wayne company sold its tech to a Chinese-American bank
Technical.ly Philly, December 20, 2018
Wayne-based QuantaVerse, makers of an artificial intelligence-based platform that tracks risky financial transactions, landed a new client in Cathay Bank, a California-based Chinese-American bank.
Do Board Actions Reflect Mounting Concerns About Compliance?
Agenda.com (A Financial Times Service), December 17, 2018
And that is a promise of artificial intelligence — to expose risks that wouldn’t otherwise be uncovered, says David McLaughlin, CEO of QuantaVerse, which relies on data science and AI to help companies better identify financial crimes.
Cathay Bank Partnered with QuantaVerse
FinTechInShorts.com, November 29 2018
Cathay Bank partnered with QuantaVerse to reduce costly manual financial crime investigations by using QuantaVerse’s anti-money laundering (AML) platform.
Cathay Bank Selects QuantaVerse AI Financial Crime Solutions
Financial IT, November 28, 2018
Cathay Bank will deploy QuantaVerse solutions to improve the effectiveness of its AML compliance program and financial crime investigations while expanding its correspondent banking services.
QuantaVerse to offer AML suite to Cathay Bank
The Paypers, November 28, 2018
QuantaVerse has signed an agreement with Cathay General Bancorp to offer its fully built and tested anti-money laundering (AML) platform to reduce manual financial crime investigations.
Cathay Bank picks QuantaVerse to combat crime
Banking Tech, November 28, 2018
The banking institution selected QuantaVerse’s artificial intelligence (AI) financial crime solutions as a “fully built and tested” anti-money laundering (AML) platform to reduce manual financial crime investigations.
Cathay Bank selects QuantaVerse AI financial crime tech
Finextra, November 27, 2018
Cathay Bank selected QuantaVerse’s AI financial crime solutions as a fully built and tested anti-money laundering (AML) platform to reduce costly, manual financial crime investigations.
Financial Crimecast: An AI and AML Update with QuantaVerse CEO David McLaughlin
ACFCS, October 16, 2018
In our latest podcast, we are talking with David McLaughlin, the CEO and founder of QuantaVerse, which uses data science and artificial intelligence (AI) to help institutions better identify financial crimes.
Q&A: FIBA talks AML compliance, risk in LatAm
Latin Finance Magazine, August 23, 2018
Costs related to money laundering make up roughly 2.7% of the annual global GDP and preventing it has become an increasingly necessary expense for banking institutions and law enforcement.
Miami Vice: This bank’s using AI to Thwart Financial Crime
American Banker, August 9, 2018
One of the largest banks in Florida and the largest Chilean-owned bank in the U.S. said this week it is beginning to use artificial intelligence software to detect financial crime. Bci Miami is one of the first banks in the U.S. to publicly acknowledge using AI this way, when many still consider the technology to be new, risky and unsanctioned by regulators.
QuantaVerse to Mitigate AML risk for Bci Miami Branch
The Paypers, August 8, 2018
QuantaVerse has signed an agreement with Banco de Credito e Inversiones (Bci) Miami Branch to help the bank mitigate risk, automate investigations and meet AML compliance. QuantaVerse is an artificial intelligence and machine learning solutions company specialized in identifying financial crimes.
Miami bank branch adopts artificial intelligence to combat money laundering
South Florida Business Journal, August 8, 2018
The Miami branch of Chile-based Banco de Credito e Inversiones (BCI) will begin using artificial intelligence to combat financial crimes and streamline its anti-money laundering investigations, the AI provider announced Tuesday.
Banco de Credito e Inversiones Taps QuantaVerse to Outfit Miami Branch
IBS Intelligence, August 8, 2018
Banco de Credito e Inversiones (Bci) has signed a three-year agreement with AI solutions vendor QuantaVerse for its Miami branch. Bci Miami Branch selected the QuantaVerse AI Financial Crime Solutions as an additional tool to mitigate risk, automate investigations and meet anti-money laundering (AML) compliance requirements.
Banco de Credito e Inversiones picks QuantaVerse for Miami branch
FinExtra, August 7, 2018
QuantaVerse, the first in the market with artificial intelligence (AI) solutions purpose-built for identifying financial crimes, today announced it has signed a three-year agreement with the Banco de Credito e Inversiones (Bci) for its United States Branch.
Wayne-based startup, using AI to detect financial crimes, lands major customer
Philadelphia Business Journal, August 7, 2018
After quietly putting its AI-powered software to work detecting financial crimes for more than a dozen global banks over the past two years, Wayne-based QuantaVerse announced Tuesday a noteworthy customer — the largest Chilean bank operating in the United States.
QuantaVerse Financial Crime Report simplifies FinCEN SAR filings
Compliance Week, July 16, 2018
QuantaVerse, the first in the market with artificial intelligence (AI) solutions purpose-built for identifying financial crimes, helps financial institutions file timely and accurate suspicious activity reports (SARs) that match FinCEN’s recently revamped SAR filing format in the BSA E-Filing System
The QuantaVerse Automated Financial Crime Report Addresses New FinCEN Suspicious Activity Report (SAR) Format
FinTech Finance, July 10, 2018
The QuantaVerse Financial Crime Report automatically compiles information relevant for filing SARs including content related to FinCEN’s newly recommended fields and categories such as geographic targeting orders, IP address date/timestamping, and new/modified subtype selections associated with structuring, fraud, money laundering, gaming, identification/documentation, securities and mortgage fraud.
Crypto Laundering: AML Regs Tighten
FinOps Report, June 27, 2018
QuantaVerse says that its artificial intelligence-based financial crime platform can collate customer data from transaction monitoring systems, know-your-customer databases, multiple lines of business, the deep web and other sources to generate red flags indicating suspicious activity.
Tech Disruptors: David McLaughlin, QuantaVerse
Philadelphia Business Journal, May 3, 2018
The AI-powered technology QuantaVerse has developed enables banks, corporations and other financial institutions to track down bad actors.
How the finance industry uses AI to mitigate fraud
Outside Insight, April 12, 2018
QuantaVerse is the first financial crime detecting platform with AI solutions that is purpose-built for identifying financial and other crimes through audit investigations.
Podcast: Malfeasance Prevention and Detection for Greater Profitability
Compliance Report, April 10, 2018
Fighting crime with AI? Sounds like a great sci-fi movie, but it’s a reality. QuantaVerse uses next-gen AI systems to help root out fraud and other financial malfeasance. You’ve heard the saying, ‘follow the money.’ But do you also know the breadth of positive changes that can happen in a society where financial fraud is eliminated?
How a Main Line company helps banks crack down on human traffickers
Technical.ly Philly, March 30, 2018
QuantaVerse, founded in 2014, combines data science with artificial intelligence in order to track and identify transactions by shady users: like money launderers, terrorist financiers or, as shown in a documentary released last week by The Economist, human traffickers.
How Artificial Intelligence Can Help Overcome Challenges in Correspondent Banking Relationships
ACAMS Today, March 20, 2018
Artificial intelligence-based systems, unlike TMS, can detect patterns of behavior, analyze the intent of those patterns and expose anomalous activities. For example, transactions that do not follow the usual frequency and directional patterns expected for a given type of account may not be flagged by a TMS, but would be identified with an effective AI solution.
How can banks be used to stop human trafficking?
The Economist, March 20, 2018
Human trafficking is devastating for the victims but low-risk for the criminals, whose activities are largely hidden from view. To disrupt it, law enforcement is turning to some unlikely new partners—banks.
AI as new tool in banks’ crime-fighting bag?
American Banker, March 12, 2018
Other providers of AI-driven AML software include Zest, Merlon Intelligence, QuantaVerse and Attivio. In February, Nice Actimize released a new version of its AML software that has a machine learning component that does anomaly detection and clustering.
QuantaVerse Prospers from Increased Adoption of Artificial Intelligence
Financial IT, February 21, 2018
QuantaVerse, the first in the market with artificial intelligence (AI) solutions purpose-built for identifying financial crimes, finished 2017 strong as adoption of AI and machine learning to identify suspicious financial activity continues to accelerate.
Fixing AML: Can New Technology Help Address the De-risking Dilemma?
Center for Global Development, February 19, 2018
David McLaughlin, CEO of QuantaVerse, describes a situation in which one of his company’s programs flagged a transaction between a computer manufacturer and a casino. While casinos are major purchasers of IT equipment, the machine learning program saw that the money was flowing from the manufacturer to the casino, not the other way around. Because the algorithm had never seen this before, it flagged the transaction for further investigation, whereupon suspicious activities were discovered.
Using AI to Fight Crime: The Terrorism, Trafficking And Money Laundering Links
Forbes, January 11, 2018
“Financial institutions can now expand into regions that were once considered to be too fraught with corruption to service, confident that their tools can “identify the types of transactions that clients involved in criminal activity are using to move money around,” QuantaVerse founder David McLaughlin said.”
Your Money Helps Fight Crime: Using AI To Fight Terrorism, Trafficking And Money Laundering
Forbes, January 9, 2018
“Historically, the banking industry treated identifying and reporting money laundering as an arbitrage game, said David McLaughlin, founder and CEO of QuantaVerse, the first company with AI solutions purpose-built for identifying money laundering and other financial crimes.”
Episode 365, David McLaughlin on QuantaVerse’s new Chief Audit Executive Checkup
FCPA Compliance Report, January 8, 2018
“The Chief Audit Executive Checkup service identifies anomalous data patterns related to both known and not yet identified financial crime typologies. The Chief Audit Executive Checkup service lets organizations see first-hand how AI analysis can improve their audit processes and outcomes.”
‘CAE Checkup’ evaluates effectiveness of AI-based audit investigations
Compliance Week, January 8, 2018
“QuantaVerse, the first in the market with AI solutions purpose-built for identifying financial crimes, has launched a new service, CAE (Chief Audit Executive) Checkup, that enables companies and financial institutions to evaluate the effectiveness of an artificial intelligence (AI)-based approach to audit investigations.”
QuantaVerse CEO: The increasing liability of 2017 will continue AI could make AML a revenue booster
ACFCS, January 4, 2018
“As ACFCS ushers in 2018, we are talking with experts across the fields of financial crime compliance, investigations and technologies to find out what were the biggest trends in 2017 and what you should be ready for this year. We asked these questions to David McLaughlin, the Chief Executive Officer of QuantaVerse, a compliance technology firm using artificial intelligence to boost the monitoring and analytical capabilities of financial institutions and corporations.”
QuantaVerse Debuts ‘CAE Checkup’
Financial IT, December 15, 2017
“QuantaVerse, the first in the market with AI solutions purpose-built for identifying financial crimes, today announced a new service that corporations and financial institutions can utilize to experience the effectiveness of an AI-based approach to audit investigations.”
QuantaVerse Debuts CAE Checkup
Bank News, December 14, 2017
“QuantaVerse is capable of ingesting and examining data from a variety of sources including core accounting, core banking, travel and expense reporting, vendor servicing, trade/export, and other types of enterprise systems. Through its AI analysis, QuantaVerse identifies anomalous data patterns related to both known and not yet identified financial crime typologies.”
QuantaVerse Debuts ‘CAE Checkup’ for Evaluating the Effectiveness of an AI Approach to Internal Risk Audits
Datanami, December 14, 2017
“The CAE (Chief Audit Executive) Checkup service leverages the QuantaVerse AI Financial Crime Platform to analyze enterprise data and more efficiently and effectively identify insider threats, bribery, corruption, money laundering, fraud, terrorism financing and third-party risks that traditional internal audit investigations routinely miss.”
AI Tech Company QuantaVerse’s New Service to Fight Financial Crime
Bank Innovation, December 14, 2017
“Financial crime detecting platform QuantaVerse has added a new AI-based service to allow its financial institutions and banking clients better detect fraud and other crimes through audit investigations, as these crimes continue to be a major concern for banks and non-banks alike.”
Audit in an Age of Intelligent Machines
Internal Auditor, December 1, 2017
“QuantaVerse’s McLaughlin says internal auditors could take AI even farther by applying it to areas such as fraud investigation and compliance work. For example, rather than relying on auditors or compliance personnel to catch potential anti-bribery violations, internal audit could use AI to analyze an entire data set of expense reports to identify cases of anomalous behavior that require the most scrutiny.”
How Compliance Software Helps Stop Criminals in Their Tracks
Independent Banker Magazine, November 13, 2017
“Dan Stitt, director of financial crime analysis for QuantaVerse, an AI for financial crime software company, has worked in federal law enforcement and banking for more than two decades. Over the years, he says, law enforcement has seen “both great and horrible compliance programs.”
How AI can nail a bribe paying scrap metal dealer
The FCPA Blog, October 25, 2017
“Through the power of an AI-based risk mitigation solution, companies can easily analyze massive amounts of corporate financial data, discern patterns, and quickly identify where exceptions or anomalies exist that can unveil FCPA risks.”
Will AI solve the compliance industry’s ‘huge efficiency problem’?
Global Investigations Review, October 17, 2017
“David McLaughlin believes artificial intelligence can significantly help the compliance market – an area he says is riddled with inefficiencies. Founding QuantaVerse three years ago, McLaughlin concedes, he got “very lucky very early”. A major bank took a chance on him and granted access to its reams of data – food for artificial intelligence – to spot possible incidences of money laundering. From there his company developed machine learning technologies, detecting crimes he says old systems never noticed.”
On the Market: 33 tech jobs open in Philly right now
Technical.ly Philly, October 16, 2017
“QuantaVerse is looking for a Python Engineer to join its suburban HQ. Peep what the company is up to after raising a $2.4 million seed round.”
David McLaughlin of QuantaVerse on Using AI for FCPA Risk Reduction
FCPA Compliance Report, October 2, 2017
“In this episode, I have a fascinating interview with QuantaVerse which has artificial intelligence and data analytics tools to help companies manage risk more effectively. We discuss the use of such tools and techniques for risk reduction solutions to provide insight into the details of your customer’s customers, which allows a company to not only identify bad actors but also aggressively fight financial crime, including fraud, bribery and corruption.”
What Money Laundering Looks Like in Community Banks
Corporate Compliance Insights, September 29, 2017
“Although they generally have smaller compliance teams and budgets, the nation’s community banks face the same arduous compliance challenges as their larger bank counterparts. Artificial intelligence and machine learning solutions can greatly assist community banks by detecting suspicious entities and transactions in an effort to improve regulatory compliance and AML investigation efficiency.”
Why Artificial Intelligence Technology is the Future of Financial Crime Mitigation
ACFCS (Association of Certified Financial Crime Specialists), September 26, 2017
“Financial institutions have begun “test-driving” AI which has produced exceptional early results. The question surrounding the use of AI within financial institutions has evolved from “if” to “how” to put AI to work. As proven in other industries and with early adopters in the banking industry, AI offers the ability to radically improve the detection of suspicious account activity.”
AI Enables Banks to Identify and Prevent Money Laundering While Surpassing Regulatory Demands
Inside Big Data, September 6, 2017
“In this special guest feature, David McLaughlin, CEO and Founder of QuantaVerse, discusses how advancements in data science, including artificial intelligence (AI), machine learning and big data, promise to stifle money laundering and change outcomes for victims around the globe.”
How AI Helps Financial Institutions Perform Customer Due Diligence
Upside/TDWI, August 30, 2017
“AI can help financial institutions reduce their AML risk — including addressing Fifth Pillar obligations — by facilitating the data collection process using external sources, such as public registrars, private databases, social media, and other unstructured data, to prepopulate data and streamline customer interaction.”
Can AI spy financial crime without implicating innocents?
American Banker, July 25, 2017
“QuantaVerse is one vendor of AI software for financial crime detection. QuantaVerse takes the identity verification data banks already get from providers like Thomson Reuters, LexisNexis and FactSet and analyzes it in aggregate.”
Wayne-based AI company QuantaVerse lands WIRED profile
Technical.ly Philly, July 14, 2017
“Artificial Intelligence company QuantaVerse, founded by Navy vet David McLaughlin, was the star of a Wired article last week on how banks are using AI to fight money laundering, terrorism and other criminal activity. Using proprietary data science algorithms to sift through internal and external data, QuantaVerse sells its services to the banking industry.”
New Solutions: AI Takes on AML
Bank News Magazine, July 12, 2017
“QuantaVerse, innovator of data science and artificial intelligence solutions created to identify financial crimes, released a complimentary analysis that financial institutions can use to test the effectiveness of their AML programs. The CCO Checkup will analyze transaction data to detect “false negatives” or anomalous behaviors that may have been missed by an institution’s existing TMS.”
Banks to use AI to sever terrorists’ funding
The Stack, July 10, 2017
“In an effort to combat terrorist activities, banks are planning to start using artificial intelligence (AI) and machine learning to identify suspicious transactions and sever funds to jihadists. QuantaVerse, a Pennsylvania-based technology firm, has developed an AI to monitor and identify financial crimes, from terrorist funding to money laundering.”
How Machine Learning Is Helping Financial Institutions Tackle Terrorist Funding
Sputnik News, July 10, 2017
“Such capabilities were pivotal to identifying an alleged drug trafficking ring in Panama — Grupo Wisa, a holding company which runs duty free stores in Latin American airports. QuantaVerse found a series of invoices for large, round dollar amounts being passed back and forth between businesses that had the same owner, a telltale sign of a money laundering operation. Moreover, the firm’s founders believed it may well have been in aid of terrorist activities.”
AI is the Key to Ending Terrorism and Other Criminal Activities
Edgy Labs, July 10, 2017
“QuantaVerse’s AI system can also detect potential money-laundering transactions by looking at account history and its existing relationship with other bank accounts. Traditional systems can only check up to three months’ worth of data while QuantaVerse’s system can handle up to three years of bank history.”
Banks Deploy AI to Cut Off Terrorists’ Funding
WIRED, July 9, 2017
“Banks are increasingly turning to machine learning to mine vast quantities of bank data and find anomalies in accounts and transactions that might otherwise have gone unnoticed. “It’s a surgical approach to finding a needle in a haystack,” says Stitt, who now serves as director of financial crime analysis for the Wayne, Pennsylvania-based firm QuantaVerse, which developed the AI technology that some of the world’s biggest banks use to identify money laundering, terrorist funding, and other financial crimes. The technology has already helped identify a Panamanian man the DEA called one of the world’s most significant drug money launderers.”
Improving the Effectiveness of AML Programs
Corporate Compliance Insights, June 30, 2017
“To combat money laundering, transaction monitoring systems (TMS) are relied upon as a first line of defense by financial institutions. However, TMS can allow an unacceptable number of illicit transactions, or false negatives, to go unflagged due to their dependency on the identification, development and manual implementation of new TMS rules and scenarios.”
Innovation in Compliance Technology: Emerging Themes and Vendor Solutions
Celent, June 22, 2017
“Regulatory and cost pressures are exposing the limitations of traditional approach to compliance, and forcing banks and other financial institutions to innovate by adopting new technology and operational models.”
CCO Checkup helps financial firms test AML program effectiveness
Compliance Week, June 12, 2017
“Financial institutions can take full advantage of QuantaVerse’s CCO Checkup with minimal effort and no long-term commitment. Included in the CCO Checkup, participating financial institutions receive a QuantaVerse Financial Crimes Report (FCR) detailing the five cases scored highest by the AI solution and representing the greatest risk to the institution.”
QuantaVerse offers CCO Checkup for AML Compliance
The Paypers, June 08, 2017
“QuantaVerse has released a new tool, the CCO Checkup, aimed at financial institutions who want to reduce their AML-compliance risks. Unlike existing transaction monitoring systems (TMS), AI technology based systems are dynamic and can detect patterns of behavior and analyze the intent of those patterns to identify suspicious activities.”
AI Tackles Money Laundering: QuantaVerse Introduces Free Checkup Tool
Upside/TDWI, June 07, 2017
“The QuantaVerse solution also provides financial institutions with a virtuous feedback loop that improves performance of their TMS by recommending new rules for catching new criminal behavior patterns that are uncovered during AI analysis. This provides financial intuitions with documented guidance on TMS rule scenarios and model tuning and drives continuous improvement of their AML efforts over time.”
QuantaVerse Reveals CCO Checkup to Help Financial Institutions Evaluate Artificial Intelligence
Financial IT, June 06, 2017
“The CCO (Chief Compliance Officer) Checkup is a service whereby QuantaVerse’s AI solution will analyze transaction data to detect “false negatives” or anomalous behaviors that may have been missed by an institution’s existing transaction monitoring system (TMS).”
Rise of the Machines: Boards Brace for AML Changes
Agenda Week, May 30, 2017
“Anti–money laundering (AML) service providers such as Giant Oak, Nice Actimize, Oracle Financial Services and QuantaVerse are developing and deploying technology that uses machine learning (ML) and artificial intelligence (AI) to help companies more effectively comply with regulations aimed at curbing money laundering and other crimes.”
U.S. Banks Should Seek New Solutions – Not Reduced Expectations – In Fight Against Financial Crimes
Banking CIO Outlook, May 29, 2017
“I have witnessed how the evolution of data science including big data, machine learning and artificial intelligence (AI) is beginning to transform the battle against financial crimes. One hallmark of an ineffective AML program is the occurrence of false positives, transaction alerts that are not ultimately money laundering. Even more troubling are the undetected transactions, or false negatives, that allow money launderers to continue to operate with impunity.”
Podcast: ‘A needle in a stack of needles’: Using AI to detect money laundering
American Banker, May 23, 2017
“David McLaughlin, founder and CEO of QuantaVerse, discusses how artificial intelligence can improve anti-money-laundering compliance; the problems of de-risking and “defensive filing” of suspicious activity reports; the Clearing House’s proposal to reduce banks’ AML costs; and more.”
PayThink Artificial intelligence can cut money laundering’s ‘acceptable losses’
Payments Source, April 21, 2017
“Although the dire need to put a stop to money laundering is well understood, an ongoing negotiation regarding what amount of money laundering is an acceptable cost of doing business plagues regulators and those inside who are responsible for the detection and prevention of financial crimes.”
AML: Making Suspicious Activity Reports More Effective
FinOps Report, April 18, 2017
“Banks and other financial institutions may think they can prove to regulators they are combatting financial crime and terrorist activities by filing as many suspicious activity reports as they can.”
How AI is Helping Banks Fight Trafficking
Forensic Magazine, April 13, 2017
“In the past few years, artificial intelligence has emerged as a solution to help banks zero in on transactions that herald criminal activity. Machine learning allows for the identification of suspicious patterns, and AI systems are able to comb through large amounts of data more precisely and efficiently, catching instances of money laundering faster and with more accuracy than ever before.”
QuantaVerse powers NY companies to fight terrorism, money laundering with AI
The Paypers, March 2, 2017
“QuantaVerse has announced that its artificial intelligence (AI) and data science-powered technology enables NY-based institutions to comply with Anti-Money Laundering (AML) regulations.”
Using Data Science to Mitigate Bank Employee Fraud
ABA Bank Compliance, March 1, 2017
“Data can and should be harnessed by banks to produce valuable insights regarding the behaviors and actions of people and entities—both legitimate and illegitimate. If the right questions are being asked, there is no excuse for this type of fraud or unethical behavior to exist on a systemic basis. Data science, including big data, artificial intelligence and machine learning, can enable institutions of all industries and sizes to better manage risks, to find fraud and criminality, and to therefore support the needs of compliance, management and governing boards.”
QuantaVerse pitches AI platform to help NY firms meet anti-terrorism transaction monitoring rules
FinExtra, February 28, 2017
“QuantaVerse today announced that its artificial intelligence (AI) and data science-powered technology platform is uniquely designed to help banks and other regulated institutions comply with risk-based Anti-Terrorism and Anti-Money Laundering (AML) regulations, including the rule recently put into effect by the New York Department of Financial Services (DFS).”
The 2017 PACT Enterprise Awards finalists have been named
Philly Tech News, February 27, 2017
“Philly Tech News profiled QuantaVerse (Technology Startup nominee) in December. The Wayne-based Fintech venture won the “Peoples’ Choice” award at PACT’s IMPACT 2016 Capital Conference in the fall, and has also been nominated for benzinga’s Global Fintech awards.”
Wayne-based Fintech startup QuantaVerse has a compelling value proposition
Philly Tech News, December 27, 2016
“Wayne-based fintech startup QuantaVerse has a well-defined idea, deep domain expertise, a clear market opportunity, proprietary technology, an increasing amount of funding, and some strong supporters. Founded by former SEI Investments (NASDAQ: SEIC) executive David McLaughlin in 2014, QuantaVerse uses a combination of data science techniques to filter through a bank’s data as well as external data to flag potential money laundering cases and other potential crimes.”
‘A Robot Could Alleviate This Drudgery’: Bank Compliance Meets AI
American Banker, October 11, 2016
“David McLaughlin, CEO of QuantaVerse, whose AI software is used by large banks and card issuers to improve their AML processes, estimates about 75% of the work human investigators do on money laundering cases could be automated. Artificial intelligence’s ability to analyze vast amounts of data, looking for patterns and to scrape the dark web and the deep web, can be applied to know-your-customer processes, McLaughlin said.”
How Wells Fargo Could Have Avoided a Scandal
Barron’s, October 07, 2016
“The firing of 5,300 Wells Fargo (ticker: WFC) employees for purportedly opening two million unauthorized accounts suggests that management wasn’t comfortable with this unethical activity. Many are speculating that such activities happening over a period of several years, means that, overtly or covertly, some managers turned a blind eye to a situation of ongoing, and systemic, fraudulent activity.”
Wayne Company Battles Money Launderers
Philadelphia Business Journal, October 05, 2016
“Wayne-based QuantaVerse is walking the line between early stage and growth stage as it delves into a major marketing push and eyes a series B round in the coming months. The company is aiming to make waves in the anti-money laundering technology market, one that experts say is rife with chances to produce powerful results on an international scale.”
Artificial Intelligence: The Next Frontier in AML Compliance
FinOps Report, September 08, 2016
“We are seeing growing interest from the largest to the smallest banks alike,” says David McLaughlin, chief executive of QuantaVerse based in Wayne, Penn. “Small to mid-tier banks also rely on relatively large investigative teams and can achieve a different decision on whether the alert represents suspicious activity depending on the analyst. There is little consistency because subjective opinions can play a factor.”
Disruptive technologies are no longer the stuff of science fiction. They’re not even the “next big thing.” Successful firms are using them right now to automate manual processes in their AML programs.
Pandemic disruption in 2020 prioritized the automation of anti-money laundering (AML) investigations for compliance teams. Risk related to inconsistent investigation decision-making and reporting multiplied. The danger of penalties heightened. And now, the 2021...
While this is debated, the problem persists as legacy AML technology such as transaction monitoring systems (TMS) have little to no ability to identify and assess risk created by shell companies. And while policies, procedures, and processes, if applied correctly, can protect financial institutions from becoming conduits for some fraction of money laundering, terrorist financing, and other financial crimes, identifying shell company risk continues to be elusive.
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