AI speeds up the management of money laundering risk compliance

A company has developed a platform that helps manage fraud detection by automating the filing of suspicious activity reports

Spotted: According to the United Nations Office on Drugs and Crime, the estimated amount of money laundered globally each year is between 2 and 5 per cent of global GDP, or between $800 billion (around €791 billion) and $2 trillion (around €1.98 trillion). This money is used to finance a range of nefarious activities, including terrorism and human trafficking. In the UK, many businesses, including financial institutions, estate agents, and art dealers have a legal duty to assess risks, carry out checks on businesses and customers, and keep records that can help to prevent money laundering.

To help with money laundering risk management, anti-money laundering (AML) software company Lucinity has developed a suite of tools that use artificial intelligence (AI) to help companies improve their compliance. The company uses a ‘Human AI’ approach, which combines AI with human insights and expertise. In practice, this means that the software learns as it goes, providing fewer false positives over time.

The Lucinity platform provides a user-friendly interface and visulaisations that helps users detect suspicious activity. It also automates the management and filing of the required suspicious activity reports. This helps organisations meet their compliance requirements while also improving fraud detection productivity.

Lucinity founder and CEO Guðmundur Kristjánsson describes the company as having a new approach to tackling money laundering, saying, “Our simple-to-use systems work with analysts, not against them, complementing their skills and making them superheroes so they can take on financial crime, saving institutions time and money in the process.”

Financial fraud is on the rise – but so is the development of new ways to combat it. Springwise has covered several new processes and platforms designed to detect and prevent fraud. These include a bankcard with a changeable CVV, a startup that aims to eliminate fraud in the second-hand luxury goods market, and a smart contract management platform.