Nasdaq Launches Anti-Money Laundering Investigation Technology
“The financial industry is making a structural shift to more intelligent technologies and real-time adaptive analytics based on much larger, more diverse data pools to detect and investigate financial crime,” said
The Automated Investigations Management space is a historically underserviced area of financial crime operations that presents a significant gap in the investigations management process for banks. Many techniques are used to launder money, causing banks to cast a wide net to catch perpetrators. The wide scope of surveillance means AML Transaction Monitoring (AMLTM) systems could potentially trigger as many as 200,000 to 300,000 alerts a month in extreme cases. In response, many banks have tightened the parameters within their AMLTM systems or added additional scoring mechanisms, thereby reducing alerts. However, when banks tune their models too tightly, they run the risk of missing criminal activity and exposing themselves to regulatory sanction. Even those that have tightened their parameters can experience 20,000 to 25,000 alerts in a month.
To support these efforts, the Nasdaq Automated Investigator ingests alert data from any transaction monitoring system, collates all of the necessary data required for analysis, analyzes the data and then replicates complex human decision making to provide a clear, auditable justification for all alerts regardless of volume, and in seconds. The technology is powered by multiple variants of artificial intelligence including both supervised and unsupervised learning in conjunction with business rules to provide a significant increase in operational efficiency. Beyond AML, Nasdaq sees broad applicability for this new category of solutions that the Nasdaq Automated Investigator has established, and plans to roll out functionality across complementary financial crime segments in the future.
“We have designed the Nasdaq Automated Investigator to automate the complex stages of an alert investigation process with tools focused on the mechanics and effectiveness of the actual investigation,” said
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