IMPACT OF TECHNOLOGY ON AML IN FINANCIAL INSTITUTIONS
R&C: How is technology revolutionising the way financial institutions (FIs) fight financial crime? To what extent are ‘traditional’ anti-money laundering (AML) methods no longer fit for purpose?
Harrison: Technology has enabled financial institutions (FIs) to harness the power of advanced data analytics and artificial intelligence (AI) to detect and prevent financial crimes more effectively. These tools, utilised within pioneering platforms, offer a configurable and transformative solution that can quickly analyse vast amounts of data, identify patterns and detect anomalies that are difficult to spot using traditional methods. Utilising AI and biometric technology allows for the real-time detection of complex money laundering schemes and suspicious activities, providing a significant advantage over traditional manual processes. In contrast, the reliance on traditional manual checks, as admitted by 57 percent of surveyed FIs in our latest report, is worrying. By not utilising the latest in AI and biometric technology, source of funds checks, real-time watchlists and ultimate beneficial owner (UBO) databases, these FIs are exposing themselves to incredibly high levels of risk.
Allen: One of the biggest issues for FIs generally, not just within compliance, is the sheer volume of data they are now dealing with. With so much information being processed every day, it is difficult for traditional anti-money laundering (AML) methods to keep up. By harnessing big data technology, FIs can access, process and host data – both structured and unstructured – from a wider range of different sources and collate it all to get the bigger picture they need.
Jan-Mar 2024 Issue
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