While AI can have great contributions to the fight of financial crime, one of the biggest problems with AI at present is the comprehension of the decision-making process. Explainable AI serves as a transparency technique by providing an explanation of the output, while maintaining a high level of prediction accuracy. This helps banks and financial institutions to tread the fine line of decision making in compliance.
Cross-border payment transactions promote international trade and services. However, foreign transactions entail an increased risk of financial crime. Credit institutions prevent this risk with effective correspondent bank monitoring and systematic analysis of payment messages.
Peer-to-Peer (P2P) payments are increasingly popular for their simplicity, speed, and global reach. Unfortunately, this also attracts financial crime. But often the responsibilities to fight crime is vaguely split between banks and payment intermediaries. However, both parties are under constant pressure to improve. Not just to keep up with the criminals, but also to keep up with regulators. Overall, the use of P2P payments will most likely increase in the future and therefore trust is crucial for its success.
The 6th EU Money Laundering Directive aims to harmonize the criminal liability and the procedural requirements for the prosecution of money laundering in the EU countries and for international cooperation. What does that mean?
In order to protect the financial system from abuse, measures to comply with national and international embargo regulations are required. Filter software systems and their rule sets are of great importance there. However, these must be analyzed regularly to guarantee optimal hit quality.
Terrorists running online fundraisers. Cryptocurrencies are their preferred payment method. A new challenge for compliance.
Compliance will remain a complex and fast moving business also in 2020 and this blog will keep covering and looking at relevant topics from different perspectives. Diverse articles have caught a great deal of attention last year – from virtual bank accounts to KYC versus KYT to gifts and benefits from business partners. Here a complete overview and summary of the most popular topics in 2019.
KYC is a central element in the customer onboarding process and the risk-based transaction monitoring. But how effective is KYC really for efficient transaction monitoring? The content of transaction data is often poorly suited to fully understand what the transaction is about. A closer look into how to better understand your transactions.
Despite elaborated systems, financial crime is still an omnipresent topic for many companies. The increasing popularity of so-called direct banks presents compliance with a new challenge.
The financial sector is one of the first domains to drive interest in using artificial intelligence (AI), even before high computing machines were available. With the release of Louis Bachelier’s thesis Théorie de la Spéculation (Theory of Speculation) in 1900, advanced mathematics in the financial field originated and the rise of statistical modelling marked the beginning of primitive AI in