Wayne, PA (November 27, 2018) – QuantaVerse, the first in the market with artificial intelligence (AI) solutions purpose-built for identifying financial crimes, today announced it has signed an agreement with Cathay General Bancorp, a holding company for Cathay Bank, a California state-charted bank. 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.
Cathay Bank will deploy the following QuantaVerse solutions to improve the effectiveness of its AML compliance program and financial crime investigations while expanding its correspondent banking services.
- QuantaVerse Pre-TMS Entity Resolution & Risk ScoringTM reduces transaction monitoring system (TMS) false positive alerts by classifying the risk of each transacting party, down to the pseudo-client level. In the vast majority of transaction messages, who the transacting parties are is often ambiguous which forces an expensive manual intervention.
- QuantaVerse Alert InvestigatorTM automates investigations when an alert is produced by a TMS. By replicating much of the human investigative process which analyzes entity, transaction, and intention (or economic purpose) variables, up to 70 percent of an AML case investigation can be successfully completed by QuantaVerse.
- QuantaVerse False Negative Identification and InvestigatorTM examines transactions for financial crime risks missed by a TMS. According to industry estimates, up to 70 percent of financial crimes go unalerted and are therefore uninvestigated and unreported. These false negatives have the potential to cause significant risks to both the organization and their accountable employees.
- QuantaVerse Automated V & V Transaction AnalysisTM provides risk managers with better insights into the variances in correspondent bank account activity that might indicate risks of financial crimes, or that suggest an account is being used for something other than its stated purpose.
The Alert Investigator and False Negative Identification and Investigator solutions provide QuantaVerse Financial Crime Reports (FCR) that automate alert investigations, detailing suspicious activity and providing risk scores for both entities and transactions. The QuantaVerse FCR also includes the supporting documentation necessary for the case to be efficiently analyzed by an AML investigator and for creating a suspicious activity report if indicated.
“We are excited to be working with Cathay Bank and other financial institutions that are dedicated to strengthening AML compliance,” explained David McLaughlin, CEO and Founder of QuantaVerse. “Our full suite of AI financial crime solutions will better utilize the bank’s resources to identify financial crimes, streamline its AML investigation process and eliminate bad actors from the global banking system.”
About Cathay General Bancorp
Cathay General Bancorp is the holding company for Cathay Bank, a California state-chartered bank. Founded in 1962, Cathay Bank offers a wide range of financial services. Cathay Bank currently operates 43 branches in California, 12 branches in New York State, three in the Chicago, Illinois area, three in Washington State, two in Texas, one in Maryland, one in Massachusetts, one in Nevada, one in New Jersey, one in Hong Kong, and a representative office in Taipei and in Shanghai. Cathay Bank’s website is found at www.cathaybank.com. Cathay General Bancorp’s website is found at www.cathaygeneralbancorp.com.
QuantaVerse is the leader of artificial intelligence (AI) and machine learning solutions purpose-built for identifying financial crimes. QuantaVerse utilizes its AI Financial Crime Platform to reduce financial crime risk by identifying patterns and discerning anomalies that current approaches and systems regularly miss. The QuantaVerse solutions have helped customers more efficiently comply with AML (Anti-Money Laundering), KYC (Know Your Customer) and FCPA (Foreign Corrupt Practices Act) regulations. Most importantly, QuantaVerse is helping to rid organizations of money laundering and other financial crimes that support our greatest global ills – the drug trade, human trafficking, terrorism and political corruption. For more information, contact QuantaVerse at (610) 465-7320.
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.
On the final day of the FIBA conference, QuantaVerse Founder and CEO, David McLaughlin, participated on the “Customer Profiling, Use of Innovative Technologies in Onboarding and Risk Assessment” panel. David Schwartz, President and CEO of FIBA, set up the panel discussion by emphasizing the importance and impact that innovative technologies have on risk assessment and the customer onboarding process.
CASE STUDY: AI-Powered Entity and Alert Adjudication Streamlines Financial Crime Investigation Processes
Based on these outcomes, the bank is moving QuantaVerse AI solutions into production. Moving forward, the bank will be better equipped to find hidden financial crime risk while automating 70 percent of its AML investigation processes, enabling investigators to focus their time and talents on the most complex cases.