By Sandeep Seal, Principal Consultant – AML & Financial Crime at Azentio

As the volumes, incidences and sophistication of financial crimes are witnessing a surge in an increasingly digital world, It is time to relook at technology solution capabilities that can give financial institutions a safer and healthier playing field.

A healthy financial sector is a vital requirement to achieve sustainable growth. Hence, it is essential that considerable effort is invested by private and government organisations, including regulators, to ensure that the financial ecosystem is primarily protected from criminal activities, to maintain economic integrity in general.

However, financial crimes, both in volumes and numbers, have increased substantially in last few years as the perpetrators have become more sophisticated and innovative in their methodologies. The pandemic situation has created a productive environment for such crimes, while the surge in digital transactions and eCommerce, has generated new avenues for fraudsters to take advantage of. The scams are not only getting more innovative and diverse, but they are also being executed faster.

Under these circumstances, financial service providers face challenges to improve financial crime detection and management capabilities while meeting their obligations towards regulatory norms, which are getting more stringent with each passing day. There is constant pressure to improve their crime management capabilities and meet the regulatory requirements at a lower investment and with less resources, while also competing against new fintechs having low-cost models.

This calls for an advanced solution that can give a single view of the varied risks across the customer lifecycle and ensure complete regulatory coverage, by harmonising cloud, artificial intelligence (AI) and robotic process automation (RPA) technologies, and domain expertise.

To be truly beneficial and to make a big impact, a financial crime detection and management solution, should have certain key capabilities and features:

  • The solution should be cloud-native, leveraging both API and AI technologies, which can integrate data and give a holistic view and insights across multiple internal and external source systems, especially those tasked with transaction monitoring, fraud prevention and Know Your Customer (KYC)
  • It should have a machine learning (ML)-based platform that collects and analyses client data across different systems to improve KYC and anti-money laundering (AML) processes to decrease false positive alerts
  • To help risk managers respond faster to changes in the market, and to better understand risk drivers cost-effectively, the solution should have advanced cloud technologies
  • Also vital is the ability to monitor crime patterns across borders to present a single source of truth on crime hotspots and the evolving fraudulent patterns
  • The solution should be able to identify region-based sanctions risk, connected to a digital identity in real time, and then give a comprehensive assessment to risk managers
  • The capability to appropriately balance exceptional anomaly prediction and decision-taking capability without lowering the end customer experience, is essential
  • Financial service providers require technology features that can help incorporate and process non-transactional events from all possible data platforms and formats, covering phone calls, emails, internet-connecting devices, and biometrics, just to name a few
  • The solution should provide behavioural analytics from across multiple digital payment platforms and present insights for the omni-channel users

Having the right technology solution alone may not give you the desired results. Financial institutions should also employ the services of AI resources who can make the solution work with the best outcomes. These resources should be able to grasp and work on the subtleties within AI models to help the organisation move from a rule-based system to a one that makes the most of the adaptive power of ML to create models that can identify suspicious patterns and enhance the detection process over time.

Amlock™, Azentio’s financial crime detection and management solution, is based on the above fundamentals and complemented by the company’s rich expertise in the domain globally. Financial service providers across the world have been using Amlock™ to enhance their AML and sanctions compliance with the effective use of advanced business analytics. Amlock™ provides an integrated view across data streams and includes analytical and investigative tools that transform routine data into meaningful, valuable and actionable intelligence to detect potential money laundering and meet compliance requirements.

Amlock™ applies the latest features of AI and ML technologies. It uses analytics meticulously to ensure reduced false positives, while streamlining vital functions, such as customer profiling, alert risk scoring, clustering & outlier analyses and trend analyses.