Wayne, PA (December 14, 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. 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.
For corporations and financial institutions, financial crime is a complex, ever-evolving issue that has serious operational, financial, legal, regulatory and reputational risk implications. While governments and law enforcement agencies around the globe are stepping up efforts to combat financial crime, it falls to internal audit teams to help improve and protect their organizations.
Given the technology historically available to them, Chief Audit Executives (CAEs) and internal audit teams had to limit their investigations to representative samples of data and conduct a manual search for abnormalities or anomalous activity within that data. These representative samples require the development of a time-consuming sampling methodology, which coupled with smaller data sets, can lead to unnecessary risks and potentially missed financial crimes.
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.
The CAE Checkup lets organizations see first-hand how AI analysis can improve their audit processes and outcomes. It includes client-specific audit working papers and reports outlining the most serious identified anomalies, as well as a visual presentation so results can be interpreted quickly. The CAE Checkup also includes the supporting documentation needed to conduct further investigations, if indicated.
As an example, if an internal team was tasked to audit an international electronics company’s line of business (LOB) with Uzbekistan, the team would manually review 150 travel and expense reports for anomalies, one month’s worth of core accounting system records of financial transfers to/from Uzbekistan, and 30 days of vendor payments as they relate to possible FCPA or other insider threat or corruption risk. The internal audit team might identify 1-2 cases in which employees submitted questionable travel expense reports. In a CAE Checkup engagement, the internal audit team could have leveraged AI to examine thousands of combined data points to holistically screen all LOB data related to Uzbekistan for known and unknown financial crime red flags truly worthy of their attention.
“While financial crime continues to be a serious problem for organizations of all sizes, AI and advanced data analytics offer the ability to meaningfully reduce risk,” explains David McLaughlin, CEO and Founder of QuantaVerse. “Our CAE Checkup is a fast and easy method for audit leaders to evaluate the effectiveness of an AI-powered audit in improving the detection of entities or transactions that present unacceptable risk.”
QuantaVerse is a leader of artificial intelligence (AI) and machine learning solutions purpose-built for identifying financial crimes. Utilizing its AI Financial Crime Platform, QuantaVerse integrates and filters institutional data and related external data – including public Internet data, unstructured deep and dark Web data, as well as government and commercial datasets – to help its customers comply with AML (Anti-Money Laundering), KYC (Know Your Customer) and FCPA (Foreign Corrupt Practices Act) regulations and to rid their institutions of money laundering and other financial crimes. For more information, contact QuantaVerse at (610) 465-7320 or visit www.QuantaVerse.net.
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.
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