Fintech Today
  • About
  • Banking
  • Insurance
  • Resources
    • COVID-19
Subscribe
No Result
View All Result
  • Digital Transformation
  • Customer Experience
  • Cybersecurity & Risk
  • Regulation & Compliance
  • Claims Management
Fintech Today
  • Digital Transformation
  • Customer Experience
  • Cybersecurity & Risk
  • Regulation & Compliance
  • Claims Management
No Result
View All Result
Fintech Today
No Result
View All Result
Home Banking

AI and ML and Changing the AML Landscape

by Jackie Davis
April 9, 2019
in Banking
Reading Time: 4 mins read
A A
AML
Share on FacebookShare on Twitter

While the threat of money laundering activities is nothing new to the financial industry, the tools available to fight these crimes are. Using data-driven technology like artificial intelligence and machine learning, financial institutions can reduce their risk of false positives and strengthen their AML efforts. These technologies will be showcased at the upcoming ACAMS moneylaundering.com 24th Annual International AML & Financial Crime Conference. To learn more about the trends impacting AML, Financial Technology Today has compiled the top stories surrounding money laundering.

3 AML Trends to know in 2019

With the talk around AML compliance and technology heating up, it’s important for financial institutions to stay current. There are some important emerging trends to be aware of including AML compliance for cryptocurrency, AML automation, and the increase in identity theft targeting. As cryptocurrency continues to be adopted throughout the world, regulatory obligations are being enacted to protect customer data.

Many financial institutions continue to use legacy AML programs that lead to a high number of false positives, wasting valuable time and resources. Not only does this increase operational cost, it often leaves the threatening positive matches buried under piles of data. To combat this issue, many banks are switching to automated AML technology that works to reduce the number of false positives employees need to review.

Read more here.

AI and ML for Fintech

“While most popular discourse centers on data privacy concerns, one of the more serious negative impacts is the bias that lives within the data that feeds these systems and uses it to become more ‘intelligent.’ Take for example, the growing body of evidence that Facebook’s newsfeed influenced the outcome of the 2016 election, which has subsequently affected global politics and international economic fortunes,” said Navin Sharma, Vice President of Product Management at Pitney Bowes, on AI and ML technologies.

“AI has brought us the era of “black-box” decision making that is casting aside traditional decision-making processes, the kinds that have been made by consensus in meetings between people or driven by human-programmed business rules,” said Sharma. “Even with these cautions it’s highly unlikely that we’ll walk away from AI. So, the question that is typically posed is when do we use AI and when do we not? But I’m of the opinion that this question creates a false dichotomy; let me explain my point of view.”

Read more here.

Fighting AML Crime

Can artificial intelligence help financial institutions detect and fight money laundering activities? “Smurfing” a rather new name in the world of AML, uses software to arrange small bank deposits that fall below the red flag alert area for AML technology.

“A $0.25 transaction will never be spotted by a human, but transactions of that kind can launder $30m if they are done hundreds of millions of times,” said Mark Gazit, chief executive of ThetaRay. For financial institutions implementing AI, programming the technology to not only recognize large, suspicious deposits but also small, seemingly harmless deposits that are repeated, will be key to stopping the new generation of money laundering tactics.

Read more here.

Stay tuned for coverage on the upcoming ACAMS conference. Subscribe today.

Tags: ACAMS moneylaundering.com 24th Annual International AML & Financial Crime ConferenceAIamlartificial intelligencecryptocurrencymachine learningmoney launderingPitney BowesRichard StockssmurfingThetaRayUnited Nations Office on Drugs and Crime and the Financial Action Task Force

RELATED POSTS

Contributed Articles

How to Improve Cryptocurrency Customer Experience: Pitfalls and Failures

September 14, 2022
Pandemic Relief Fraud
Banking

Artificial Intelligence Helps Combat Fraud, Waste, and Abuse and Protects $5 Trillion in Pandemic Relief Funding

June 9, 2022
Contributed Articles

Charitable Giving in the Crypto Economy

May 19, 2022

TRENDING NOW

  • Cybercrime and Cyber Risk: Strategies for Protecting Your Organization

    492 shares
    Share 197 Tweet 123
  • Data Lineage and Pedigree – One and the Same?

    578 shares
    Share 231 Tweet 145
  • AI in Financial Services: Where Does Ethics Fit In?

    539 shares
    Share 216 Tweet 135
  • Who’s Driving Digital Transformation for Banks and Financial Institutions?

    499 shares
    Share 200 Tweet 125
  • Arizona’s Motor Vehicles Department (MVD) Makes Payment Offerings More Accessible

    646 shares
    Share 258 Tweet 162

CONNECT WITH US

Advertisement Banner Ad Advertisement Banner Ad Advertisement Banner Ad
Advertisement Banner Advertisement Banner Advertisement Banner

BECOME AN INSIDER

Get Financial Technology Today news and updates in your inbox.

Strategic Communications Group is a digital media company that helps business-to-business marketers drive customer demand through content marketing, content syndication, and lead identification.

Related Communities

Future Healthcare Today
Government Technology Insider
Modern Marketing Today
Retail Technology Insider
Today’s Modern Educator

Quick Links

  • Home
  • About
  • Contact Us

Become a Sponsor

Financial Technology Today offers content and advertising sponsorships to leading technology solution and service providers. Interested in becoming a sponsor? Contact us!

© 2023 Strategic Communications Group, Inc.
Privacy Policy      |      Terms of Service

No Result
View All Result
  • Home
  • About
  • Banking
  • Insurance
  • Categories
    • Digital Transformation
    • Customer Experience
    • Cybersecurity & Risk
    • Regulation & Compliance
    • Claims Management
  • Contact Us