Financial institutions have for years banked on rules-based transaction monitoring systems (TMS) to root out money laundering and other financial crimes only to be served up false positives that result in paralyzing inefficiencies and runaway costs. Although an estimated 95 percent of TMS flags are legitimate transactions, false positives necessitate time-consuming and expensive human investigations.

Simultaneously, vast amounts of financial crimes go unalerted and are therefore unreported. These false negatives have the potential to cause significant risks to both the organization and their accountable employees.

A leading commercial bank sought an AI-powered financial crime platform to:

  • Decrease false positives and related investigations
  • Improve investigative processes and facilitate faster, more consistent reporting
  • Handle growth without continuously adding to its compliance team

To begin, the QuantaVerse AI platform was fed and analyzed three years of transactional data as well as one year’s worth of TMS alerts. The solution conducted a lookback analysis that examined transactions for risk observables such as related entities, economic purpose, adverse media, and transaction beneficiaries. After a complete analysis, the QuantaVerse solution was able to quickly clear a staggering 70 percent of alerts.

With respect to the remaining 30 percent of TMS alerts, QuantaVerse replicated much of the human investigative process that analyzes entities, transactions, and the intention of those transactions. This reduced the bank’s AML case investigation time by an additional 75 percent.

The analysis of cases is clearly reported through QuantaVerse Financial Crime Investigation Reports (FCIRs). These AI-generated reports enable investigators to quickly and consistently adjudicate more cases, freeing their time and talent to focus on the most complex financial crimes. QuantaVerse FCIRs include reputation, monitoring, and intent observables with links that take investigators to the QuantaVerse application for deeper case reviews as needed. The FCIR helps investigators adjudicate and report a Level 1 case in just 15 minutes and more complex investigations in just an hour.