by Chris Black
Well, you’re beginning to see AI is poised to become the next ‘big brother,’ which could explain why banks and governments are advocating for a cashless society.
Money laundering is a major issue for financial institutions.
Banks have long relied on humans to monitor rules-based systems that detect suspicious transactions. These legacy systems yield very low rates of identifying suspicious activities.
Google Cloud wants to change the game by introducing an artificial intelligence-powered product designed to turbocharge the detection of money laundering.
Current Anti Money Laundering (AML) monitoring products rely entirely on manually defined rules, which yield low rates of identifying illegal activities, ranging from drug and human trafficking to terrorist financing. These systems consume significant resources that have to monitor billions of transactions.
Google Cloud’s AML is a consolidated machine learning (ML)-generated customer risk score versus the legacy rules-based transaction alerting system financial institutions use.
The risk score uses the bank’s data, including transactional patterns, network behavior, and Know Your Customer (KYC) data, to identify instances and groups of high-risk retail and commercial customers. The AI can quickly deliver more accurate results and alleviate the workload for banking units that monitor suspicious transactions.
AML AI can outperform current systems in detecting financial crime risk.
Google provided an example of its Cloud customer HSBC which can now detect two to four times more true positive risk, enhancing its ability to detect suspicious activities.
This advancement will likely result in banks decreasing the size of their fraud units as AI does most of the work.
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