Keeping Finances Clean with AI and Machine Learning
The chief concern of criminals while stealing funds is that the transactions should not be traced back to them. To prevent this, banks spend an estimated £5 billion annually in combating financial crime, the major chunk of which goes into detecting and reporting suspicious activity. Transaction monitoring becomes increasingly important, and attempts are being made to integrate machine learning and artificial intelligence (AI) with the intention of improving current practices.
While data analytics and machine learning are popularly seen as aiding transaction monitoring in preventing money laundering, there are several other AI-driven methods that can also prove useful. This includes anti-impersonation checks and identifying potential high-risk customers to pay close attention to their transactions and look out for suspicious activity. Machine learning can complement human judgment – they can track the cases that need special attention and direct users to them. While these are mere probabilities, they direct people to a narrow range of cases, allowing for better focus on the same.
A major complaint of banks is that even after filing a suspicious activity report; they get very little information from the police. While AI helps in recognizing the suspicious activity,—the combination of AI and human intelligence helps in tracking criminals. Gradual progress is being made, as is evident from the Joint Money Laundering Intelligence Taskforce, a group comprising several banks and law enforcement agencies, which allow increased coordination between police and banks, thus increasing the assessment provided to machines.
Further, individual institutions not only have limited information but cannot share suspicions about customers with each other. Increased sharing of information between banks could go a long way in identifying potential suspects.
AI can improve the effectiveness of the machine’s human counterparts. While these technologies improve and advance with time, it can aid in the ultimate goal of keeping finances secure.
By James Seevers, CIO & GM, Toyoda Gosei
By Bill Krivoshik, SVP & CIO, Time Warner Inc.
By Gregory Morrison, SVP & CIO, Cox Enterprises
By Alberto Ruocco, CIO, American Electric Power
By Bruce. D. Smith, SVP & CIO, Information Systems, Advocate...
By Adrian Mebane, VP-Global Ethics & Compliance, The Hershey...
By Graham Welch, Director-Cisco Security, Cisco
By Michael Watkins, Senior Product Director, Global Knowledge
By Bernd Schlotter, President of Services, Unify
By Patrick Hale, CIO, VITAS Healthcare
By Steve Bein, VP-GIS, Michael Baker International
By Jason Alan Snyder, CTO, Momentum Worldwide
By Mike Morris, CIO, Legends
By Louis Carr, Jr., CIO, Clark County
By Bill Dow, SVP and General Manager of Business Solutions,...
By Jim Whitehurst, CEO, Red Hat
By Darren Cockrel, CIO, Coyote Logistics, a UPS Company...
By Nathan Johnson, SVP and CIO, Werner Enterprises [NASDAQ:...
By David Tamayo, CIO, DCS Corporation
By Neil Hampshire, CIO, ModusLink Global Solutions, Inc....