At the turn of another year, we have dedicated this edition of our On the Front Line with AI podcast to the top financial crime trends we saw in 2017 and what can be expected in the year ahead.

Some of the key highlights from the discussion with anti-money laundering (AML) expert and Founder & CEO of QuantaVerse, David McLaughlin, include:

  • Top Financial Crime Trends in 2017
    • Cybersecurity and instances of cyberattacks, especially account takeovers and application fraud, were a major financial crime trend that spiked in 2017
    • The industry is still suffering from bad results ($1 trillion in bribes, $2.5 trillion in money stolen and laundered through the financial system)
    • The application of AI and machine learning into AML efforts was a trending topic in 2017
    • Financial institutions are looking at how to improve efficiency and cutting costs while still reporting in a way that keeps regulators satisfied
    • Individual accountability was ramped up on the enforcement equation with respect to FCPA and AML
  • Top Issues to Tackle in 2018
    • How to best operationalize AI and machine learning to fight financial crime within AML, audit, corruption and fraud efforts
    • Some incorrectly view AI/machine learning as a black box; decisions that machine makes can be fully audited
    • Regulators and legislators are starting to recognize that the existing capabilities of AML programs are ineffective
    • In testimony to the U.S. Senate Committee on Banking, the president of The Clearing House said, “one of the most pressing needs in enhancing the U.S. regime is to enable financial institutions to innovate their AML programs…and AI and machine learning could revolutionize this area”

 

Recent Posts

AI-Powered Volume and Value Analysis Exposes Shell Companies Involved in Fraud and Corruption

The AI-powered QuantaVerse Automated Volume and Value (V&V) Transaction Analysis solution provides risk managers with better insights into variances in account activity that might indicate risks of financial crimes, or that suggest an account is being used for something other than its stated purpose.  Analysis of this nature is a growing regulatory burden driven by the expectation that FIs understand the risk profile of clients as well as their clients’ clients.

read more

Resources

Technology

Solutions