AI Tackles Money Laundering: QuantaVerse Introduces Free Checkup Tool
QuantaVerse's CCO Checkup demonstrates how artificial intelligence detects unflagged transactions that present unacceptable risk to financial institutions.
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QuantaVerse, a data science and artificial intelligence (AI) solutions provider focusing on identifying financial crimes, has released a complimentary analysis that financial institutions can use to test the effectiveness of their anti-money-laundering (AML) programs. CCO (Chief Compliance Officer) Checkup is a free service that uses QuantaVerse’s AI solution to analyze transaction data to detect “false negatives” or anomalous behaviors that may have been missed by an institution’s existing transaction monitoring system (TMS).
These risks could be fines, penalties, and forfeitures for violations of BSA and other regulations. Despite increased investments in AML systems, this risk is increasing year over year. In 2016 alone, $42 billion in fines for AML non-compliance were paid to federal regulators by the largest North American and European financial institutions.
Transaction monitoring (TM) technology is essential for the maintenance of an effective AML program. However, transaction monitoring systems are failing to flag many transactions that represent serious risks for financial institutions. Legacy transaction monitoring systems are incomplete because they rely solely on rules-based engines. If a financial crime does not violate a stated rule, the TM system (TMS) won’t flag it. Unlike static rules-based TM engines, AI-enhanced systems are dynamic -- they can detect patterns of behavior and analyze the intent of those patterns to identify suspicious activities.
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.
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. The QuantaVerse FCR also includes all the supporting documentation necessary for the case to be efficiently analyzed by an AML investigator and all that is required for a suspicious activity report (SAR) to be created if indicated.
For more information, visit www.QuantaVerse.net.