Sanctions screening and fraud prevention solutions use real-time detection to prevent terrorist financing and financial crime; whereas anti-money laundering (AML) primarily follows an “observe and report” process. Such a process is all that is currently required by many regulators. Increasingly though, international compliance teams are choosing to stop transactions before they are executed – based on suspicions of money laundering activity. More and more, the industry has been asking itself if this approach of rejecting suspicious activity is a more effective strategy to prevent money laundering. This paper explores where and why AML real-time detection might make sense as a new paradigm for global financial institutions.
Global anti-money laundering (AML) standards have long required that understanding beneficial ownership be a part of a financial
institution’s AML program. Beneficial ownership outlines the identity of individuals with a controlling interest in a privately held company, enabling a financial institution to understand the ultimate beneficiary of a financial transaction. Identifying beneficial ownership can be a complex process, but it’s one that institutions must conquer if they are to remain in compliance with industry rules and legislation.
Featuring Andy Schmidt, Principal Executive Advisor
Knowing your customer is key to driving a successful strategy for client security and retention. Watch this video to get a picture of how KYC can be deployed for risk minimization, work with compliance, and make security measures more frictionless using cutting edge technology.
Financial institutions seeking to attract new customers and revenue channels are expanding into digital services, real-time payments and global transactions. However, with every new service, criminals are developing innovative ways to infiltrate financial systems, and older technologies that mitigate fraud no longer work as effectively.
So how can financial institutions respond to this growing threat?
Fortunately, more advanced technologies hold great potential for real-time financial crime mitigation. Learn about five current and emerging technologies that could impact money laundering and fraud mitigation, including artificial intelligence/machine learning, blockchain, biometrics, predictive analytics (hybrid model) and APIs.
Read the latest Fiserv white paper: Five Tech Trends That Can Transform How Financial Institutions Detect and Prevent Financial Crime.
Published By: Teradata
Published Date: Jun 12, 2013
The ever-changing environment has offered fraudsters some tactical advantages to probe for holes in the defenses of financial services companies. Conventional approaches to fraud detection and remediation remain effective to a point, but conventional tools cannot effectively and economically process what is known as big data.
In this whitepaper, Andrew Foose, vice president of NAVEX Global’s Advisory Services Team, analysed recent legal developments in the U.K. and uncovered four valuable clues on how enforcement of financial crimes may play out in 2015
Failing to contain financial crime hits banks with the double impact of crime-related losses and fines imposed by regulators and law enforcement agencies. Depending on the magnitude of a bank’s failure to stem financial crime, fines can run into hundreds of millions of dollars – and even higher in exceptional cases. More importantly, institutions are keen to protect their brand from association with transnational organized-crime rings and scandals related to corruption.
Financial organizations are deploying artificial intelligence and machine learning in the fight against financial crimes. David Stewart, Director of Pre-Sales for the Global Security Intelligence Practice at SAS, offers tips to help separate fact from market hype when reviewing new data analytics tools. You’ll learn about:
• The new industry intrigue with artificial intelligence and machine learning.
• How these emerging solutions can benefit financial institutions.
• The SAS approach of “crawl, walk, run” when it comes to adopting new analytics tools.
These emerging technologies and solutions certainly are not unique to financial services. But Stewart, a business director of security intelligence solutions within the SAS Security Intelligence
Practice, sees particular interest and application in AML circles.
"There remain a good number of manual processes within financial crimes departments in financial institutions, and AI can help automate some of those rote tasks such as document review or alert triage," he says. "Due to investments in technology, there is a lower barrier of entry for midsized institutions. "And finally, there's this anxiety over the unknown - those risks they are not able to detect, that may be hidden using traditional techniques - so they're hoping that more advanced, unsupervised learning techniques can be used to identify those edge cases or behaviors that are out of norm." In an interview about analytics and the AML paradigm shift, Stewart discusses:
• The new industry intrigue with artificial intelligence a
This white paper provides a top-level overview explaining what business analytics can do for your company - and the 8 key steps to accelerating product innovation, optimizing pricing and discovering drivers of financial performance.
The traditional managed reporting approach to BI is challenged to keep up with changing demand for business information. This research finds that providing business users with highly visual/interactive tools can help ensure they get what they need.
This white paper reveals the results of a Bloomberg Businessweek Research Services survey of 930 respondents globally on the current state of business analytics within organizations. You'll discover how and why the use of analytics is growing!
Learn what criteria distinguished certain companies as top performers within the SMB sector, the factors to consider when assessing your organization's BI competency and the required actions to achieve best-in-class performance.
How does an organization make the best use of data, and what is the proper role of IT? This paper describes how organizations can foster a culture of data analytics that promotes cooperation and collaboration between IT and business.
This paper defines predictive analytics, then details ways this type of analytics can be applied to marketing, risk, operations and more. It also includes information relevant to a wide variety of industries - from manufacturing to hospitals.
The banking sector routinely manages massive amounts of data, ranging from financial transactions to customer, operational and regulatory data. All this data means big challenges - but also big opportunities - for the industry. Find out more now!
This paper presents the 5 most common practices that result in losing a customer and how to avoid those pitfalls. You'll also learn how more customer-centric measures can help you deepen and grow relationships with your most valuable customers.
In a webcast co-hosted by the AMA and SAS, presenters described three areas of focus for using social media, and the five best practices for being effective in social media. This paper provides a summary of that webcast.
This white paper provides a blueprint for action for senior marketers and decision makers across the enterprise. It provides straightforward advice on how to build a more durable and profitable customer base.
This collection is part of the ANA Magazine Thought Leadership Series sponsored by SAS. The articles explore the variety of ways to use analytics to create marketing functions that are more accountable and profitable.