Financial crime (FinCrime) has escalated into a formidable challenge for global financial institutions, with estimated costs soaring to staggering levels. Regulatory bodies worldwide, including the U.S. Federal Reserve and the European Central Bank, have intensified scrutiny over financial institutions with compliance failures in this high-stakes environment coming with hefty penalties including fines reaching into the billions.
The United Nations estimates that between 2-5% of the global GDP, approximately $800 billion to $2 trillion, is laundered annually. Additionally, fraud alone is projected to cost companies worldwide over $5 trillion each year.
Artificial intelligence (AI) and increasingly Generative AI (GenAI) is being integrated into FinCrime solutions for enhanced performance and to keep pace in the cat-and-mouse game with increasingly sophisticated financial criminals.
RegTech Insight has compiled this list of FinCrime solution providers that have leveraged AI as a core component in their scanning, surveillance and monitoring solutions. Several of these companies were featured at the recent AI in Capital Markets Summit hosted by A-Team Group in London.AML Partners
RegTechONE is a no-code platform designed to streamline compliance and regulatory processes for financial institutions. It enables users to create custom workflows, archive data, and integrate compliance tools without the need for extensive coding expertise.
The platform supports Directed Intelligence, allowing institutions to train AI models using their specific compliance data, ensuring that the AI tools are aligned with internal risk management strategies. RegTechONE is fully scalable, making it adaptable to the evolving needs of institutions and regulatory landscapes. The implementation of Directed Intelligence involves a step-by-step approach that integrates AI into existing compliance workflows. This process allows for customization to fit the specific compliance needs and risk profiles of different institutions. By integrating Directed Intelligence into current systems, institutions can enhance their decision-making processes and ensure ongoing regulatory compliance.
Directed Intelligence is a method that captures the decision-making processes of Compliance and GRC professionals as an event log which is then used to train AI models. This approach ensures that models are tailored to the specific compliance strategies and requirements of an institution, providing a level of customization that out-of-the-box AI solutions cannot match.
Traditional pre-trained AI models often operate as “black boxes,” lacking transparency and potentially misaligning with an institution’s AML needs. Directed Intelligence addresses this by allowing institutions to train AI in-house, directly informed by their unique data and risk assessments. This not only enhances transparency but also ensures that the AI models are fully aligned with internal compliance strategies and risk tolerances.
The in-house training process offered by Directed Intelligence provides institutions with control over the AI’s development, ensuring that it accurately reflects their compliance strategies. By capturing compliance decisions and using them to train AI models, institutions can train models that are better aligned with their specific compliance functions. enhancing the overall effectiveness of the compliance processes.
Chainalysis
Chainalysis offers several key features for mitigating financial crime through its blockchain data platform. Their solutions are designed to help financial institutions, law enforcement, and centralized exchanges detect, disrupt, and deter illicit activities involving cryptocurrencies.
For financial institutions, Chainalysis provides tools to conduct due diligence, monitor transactions, and assess risk associated with digital assets. These tools allow institutions to safely onboard clients, generate new revenue opportunities, and maintain compliance with regulatory standards. Their solutions include real-time transaction monitoring, customizable alerts for suspicious activities, and advanced due diligence capabilities to trace the origins and destinations of crypto transactions????.
Centralized exchanges benefit from Chainalysis through comprehensive transaction monitoring and enhanced due diligence on suspicious activities. By leveraging on-chain data, exchanges can ensure transparency, mitigate risks, and comply with evolving regulatory standards. Additionally, Chainalysis offers tools for assessing on-chain entity risks and generating actionable insights to enhance user engagement and retention strategies??.
Overall, Chainalysis uses its extensive blockchain data and advanced analytics to support a secure and compliant crypto ecosystem, enabling various stakeholders to effectively manage and counteract financial crimes in the digital asset space????.
ComplyAdvantage
ComplyAdvantage provides a robust suite of features aimed at helping banks and financial institutions combat financial crime. Their core offering is an AI-powered financial crime database, encompassing sanctions, watchlists, politically exposed persons (PEPs), and adverse media data, which is continuously updated and verified for accuracy. This AI-driven system enhances risk identification and mitigation.
Their Know Your Business (KYB) solution automates business customer verification, incorporating dynamic risk scoring to monitor changes in a business’s risk profile, thereby streamlining onboarding processes and improving adaptability to risk status changes.
ComplyAdvantage also offers comprehensive sanctions screening, AI-driven transaction monitoring for real-time detection of suspicious activities, and adverse media monitoring using natural language processing to track global news sources. Their Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) tools streamline risk assessments, while their fraud detection capabilities analyse transaction patterns and customer behaviours to flag anomalies. Together, these features help financial institutions stay compliant and effectively combat financial crimes with advanced technology and data-driven insights.
ComplyCube
ComplyCube offers a range of solutions to mitigate financial crime, focusing on comprehensive KYC and AML functionalities. Their customer screening includes sanctions and PEP screening, adverse media checks, watchlist screening, and continuous monitoring to ensure real-time updates. They provide robust identity assurance through document verification, biometric checks, and multi-bureau checks to authenticate customer identities. For due diligence and compliance, ComplyCube offers smart KYC checks, AML solutions, risk scoring, and customer due diligence processes. These features help financial institutions streamline compliance and effectively deter fraud and other financial crimes.
Delta Capita
Using artificial intelligence and machine learning, Karbon provides a rules-based workflow engine, along with data sourcing, profile enrichment, digital outreach, identity management, screening, KYC risk scores, policy controls and MI reporting.
Karbon, the expert-led digital client lifecycle management (CLM) platform empowers financial institutions to automate time-consuming processes and reduce costs. The Karbon Portal supports our Managed Service with clear case and entity management, integrated with our client outreach and ID&V offerings and full API integration capability.
Digitising the customer outreach journey, Karbon Outreach enables operational efficiencies and accelerates onboarding whilst facilitating a frictionless experience for end-customers.
Karbon outreach and Identity Verification (ID&V) are available as modular offerings, allowing their platform components to be seamlessly integrated into an existing client platform via an API or, if preferred, as a standalone tool to enhance a client’s existing experience.
The most important asset of the financial institution or any other entity is the customer, making a customer-centric approach vital, even after the onboarding process is complete. Your organisation needs to manage the identity of the customer throughout their lifecycle in the organisation, managing customers’ lists and data seamlessly and without error. Delta Capita’s Karbon ID&V platform is a state-of-the-art tool providing identity management across business units and service channels, both at scale and in real time.
https://www.deltacapita.com/insights/clm-karbon
Ekata
Ekata, a Mastercard company, offers a suite of solutions aimed at combating financial crime in the banking and capital markets industries, focusing on identity verification and fraud prevention. Their key offerings include the Identity Engine™, which integrates the Ekata Identity Graph and Ekata Identity Network. This system uses data science and machine learning to link digital interactions to real individuals, assessing transaction risk in real-time by analysing behavioural patterns and transaction histories.
Ekata places a strong emphasis on combating synthetic identity fraud by cross-referencing data points and using dynamic identity attributes to detect fraudulent identities created with a mix of real and fabricated information. This approach makes it harder for fraudsters to evade detection.
To prevent account takeover (ATO) fraud, where cybercriminals gain unauthorized access to user accounts, Ekata uses identity verification APIs, behavioural analytics, and risk scoring systems to detect suspicious activities. These measures provide an additional layer of security against cyber threats by identifying unusual login patterns or changes in account settings.
By integrating these advanced technologies, Ekata helps financial institutions enhance their security measures against a wide range of financial crimes while ensuring a positive customer experience.
Feedzai
Feedzai’s core offering, the RiskOps platform, integrates various financial crime prevention functions into a unified system. This platform streamlines customer risk processes by providing a consistent view of data, profiles, and customer activities across multiple channels, covering areas such as account opening, transaction fraud detection, Anti-Money Laundering (AML) transaction monitoring, Know Your Customer (KYC) / Customer Due Diligence, and watchlist screening. By consolidating these processes, Feedzai aims to reduce data redundancy, cut costs, and simplify business operations.
AI and machine learning are fundamental to Feedzai’s approach, enabling frictionless workflows for data scientists and rapid model deployment. The platform provides real-time customer trust by continuously updating profiles with behavioural and transactional data, enhancing the detection and prevention of suspicious activities. Visual link analysis and transparent ‘whitebox’ explanations improve decision-making, helping analysts understand and act on insights efficiently.
Addressing emerging threats such as generative AI-powered fraud, Feedzai tackles advanced techniques used to create synthetic identities and automate fraud processes, including fraud-as-a-service models.
Fenergo
Fenergo client lifecycle management (CLM) digitally orchestrates client journeys through every point in the client lifecycle – from initial prospecting to digital account opening through maintenance and refresh, ongoing due diligence and client off-boarding. Multi-channel by design and powered by API integrations, Fenergo creates a smooth orchestration process for all client data and documentation, minimizing time to revenue.
The process of transferring information from documents to systems continues to require manual input and review, resulting in inefficient processes, increased operational costs and slower customer service.
The introduction of AI to Fenergo’s CLM, powered by Amazon Bedrock, will enable firms to more accurately identify and mitigate financial crime risk and seamlessly meet regulatory obligations for KYC, AML and sanctions measures. Fenergo’s AI-powered offering will empower firms to safely deliver more efficient, frictionless onboarding and lifecycle management journeys while accelerating time to revenue.
Fenergo’s global policy rules engine houses comprehensive business rules as well as KYC, AML, and other regulatory rules for over 120 jurisdictions globally. These include Data, Document and Ownership & Control rules. The policy rules engine works in tandem with Fenergo’s powerful workflow engine to trigger the correct policy requirements at the correct point in time, based on a number of dynamic client and related party parameters.
Fenergo’s Risk Engine enables financial institutions to automate on-demand financial crime risk assessment of clients and their related parties. Enterprise-wide, it provides your organization with a single, centralized source of risk model management to support and represent the granularity of multiple, complex financial crime risk models.
Finscan
FinScan offers a robust suite of tools to assist financial institutions in combating financial crime through advanced Anti-Money Laundering (AML) and Know Your Customer (KYC) solutions. Their platform centralizes KYC and AML operations, featuring customer and entity screening capabilities to check against sanctions, politically exposed persons (PEP), and adverse media databases. Real-time screening during onboarding and continuous monitoring ensures prompt identification of changes in political status or affiliations, thereby enhancing compliance efforts.
FinScan further enhances screening accuracy with tools for data preparation, ultimate beneficial owner (UBO) due diligence, and ID document validation. A risk scoring module assesses potential customer risk, while an enhanced due diligence module facilitates thorough investigations for high-risk customers.
FinScan Securities addresses AML and countering financing of terrorism (CFT) compliance for securities transactions, leveraging advanced technology to detect potential violations within trading books and inventories. This solution consolidates results into an aggregated list with a transparent audit trail, streamlining the risk identification and review process. Overall, FinScan’s integrated solutions enhance financial crime compliance programs’ efficiency and effectiveness, enabling institutions to meet regulatory requirements and mitigate financial crime risks comprehensively.
FourthLine
Fourthline’s identity verification offers a comprehensive analysis of ID authenticity, biometrics, and security features. Client authentication verifies the person behind the account, particularly when logging in from new devices. Their AML screening and monitoring continuously check clients against real-time watchlists, PEP, and sanction lists. Re-KYC and remediation provide automated solutions for updating KYC files efficiently. The case reviewing and auditing tool offers a complete overview of client profiles and compliance documentation. Fourthline’s investigations and reporting enhance operational efficiency with conclusive reports. Additionally, they offer qualified electronic signatures, bank account verification, proof of address, and anti-financial crime solutions with augmented analytics and expert teams.
Hummingbird
Hummingbird is a compliance and risk platform that empowers financial institutions to conduct fast, accurate financial crime investigations. Reimagining compliance workflows from the ground up, Hummingbird’s modern suite of investigative tools enables financial institutions to drive efficiency and lower costs without sacrificing quality or compromising on risk.
Hummingbird’s automation solutions streamline compliance processes by automating repetitive tasks, enforcing controls, and improving oversight. Key features include customizable triggers for automations, powerful actions to manage cases and update information, and complete auditability with detailed activity logs. The platform enhances due diligence by tracking and monitoring high-risk customers, ensures quality control through random case sampling, and accelerates case preparation by pre-populating information. Additionally, it offers a library of pre-built templates to quickly automate common compliance tasks, and AI tools to simplify complex compliance work.
ID-Pal
ID-Pal’s platform is 100% AI-powered, utilizing biometric, document, and database checks to ensure real-time, accurate verification. This automation reduces the risk of data breaches, false positives, and increases correct classification of identity documents and users????. The AI system enhances fraud prevention by performing multi-layered verification, which includes biometric analysis, document verification, and database checks. This layered approach makes it difficult for fraudsters to bypass the system, as multiple verification methods must be satisfied simultaneously??.
AI is employed to ensure compliance with AML and KYC regulations. The system automates AML screening checks against global watchlists, PEP databases, and sanctions lists, which are continuously updated to adhere to the latest regulatory standards. This reduces the reliance on manual processes and helps businesses mitigate the risk of non-compliance??. The AI-driven approach allows ID-Pal to handle large volumes of verification requests efficiently, making it scalable for businesses as they grow. The platform’s real-time decision-making capabilities ensure a seamless and efficient onboarding process??.
LSEG Risk Intelligence
LSEG Risk Intelligence World-Check is a comprehensive risk intelligence database designed to help organizations across the globe meet regulatory obligations, make informed decisions, and avoid involvement in financial crime and corrupt practices. It serves the KYC (Know Your Customer) and third-party risk screening needs of major banks, financial institutions, corporates, law enforcement bodies, and government and intelligence agencies. World-Check simplifies customer onboarding and monitoring by providing tools necessary for due diligence under various regulations, including AML (Anti-Money Laundering), counterterrorist financing, and anti-bribery and corruption.
One of the standout features is the AI-powered negative media search tool, Media Check, which canvasses global media to find relevant news for regulatory screening. This tool enhances screening efficiency and helps organizations stay compliant by providing comprehensive data for KYC and AML policies. World-Check also offers additional features like dynamic download, customized data files, and integration with platforms like Salesforce, enabling automated screening within existing workflows.
The database covers a wide range of crimes, including bribery, corruption, human trafficking, organized crime, cybercrime, and many others. The database includes both official list data and extensive information on individuals and entities connected to financial crimes or negative media reports.
https://www.lseg.com/en/risk-intelligence
Moody’s
Moody’s Intelligent Risk and Compliance Screening harnesses the power of AI and machine learning to automate risk and compliance screening. Process alerts with consistency and accuracy. And get more precise results and a significant reduction in false positives. Identify risks in the firm’s counterparty network using screening and mitigate issues before they become a problem.
Moody’s advanced screening technology, AI Review, can help reduce false positives when name matching by as much as 80%. True alerts can be prioritized to reduce the time-to-decision during risk assessments. Leveraging its machine-learning model built on over 20 years of experience and millions of analyst decisions, an alert confidence score can be produced for each inquiry and used as a first-level screening solution to mimic a human analyst.
Smarter due diligence – mitigate the risk of financial crime, meet regulatory obligations, and harness the industry-leading technology.
https://www.moodys.com/web/en/us/kyc.html
Napier
Napier AI offers a comprehensive suite of solutions for financial crime compliance. The Transaction Monitoring system uses machine learning to significantly reduce false positives and detect suspicious activities, designed for non-technical business users in various organizations. The Transaction Screening feature allows real-time searches against multiple watchlists to assess payment risks swiftly. Client Screening employs advanced fuzzy matching algorithms to screen clients against sanction lists, minimizing false positives. The Client Activity Review provides continuous, automated monitoring of customer data against expected behaviour for deeper insights. The Client Risk Assessment generates risk levels for each client, optimizing screening and monitoring processes. Finally, the Regulatory Reporting Manager streamlines the filing of Suspicious Transaction Reports (STRs) with automated form completion and robust data security, ensuring compliance with global regulations.
NICE Actimize
NICE Actimize offers a comprehensive suite of anti-money laundering (AML) solutions designed to detect and mitigate financial crime risks. The Suspicious Activity Monitoring (SAM) system utilizes advanced analytics and behavioural profiling to identify and prioritize alerts, streamlining investigations and ensuring compliance. The Customer Due Diligence (CDD) solution automates KYC processes, integrating data to continuously monitor and update customer risk profiles. Sanctions Screening employs sophisticated algorithms for real-time and batch screening against global sanctions lists, facilitating efficient alert management.The X-Sight Entity Risk solution provides a holistic view of entity relationships and risk profiles, leveraging advanced analytics to detect hidden risks. Trade-Based Money Laundering solutions monitor trade activities for suspicious patterns, while the Suspicious Transaction Activity Reporting (STAR) and Currency Transaction Reporting (CTR) solutions automate regulatory reporting, reducing administrative burden and ensuring compliance. Lastly, AML Essentials offers an integrated platform combining these tools, enhancing overall efficiency and regulatory adherence.
The AI & Analytics page offers experience-based thought leadership on AI in autonomous financial crime management and instructional articles on data science building blocks.
Saifr
SaifrScreen is an AI-powered solution designed to enhance AML (Anti-Money Laundering) and KYC (Know Your Customer) programs. It offers comprehensive risk coverage by utilizing extensive sources across the internet, including government records, court documents, news articles, and social media. This enables SaifrScreen to identify potential threats and risks more effectively than traditional systems that rely solely on structured data like sanctions lists. The platform uses advanced AI models, including natural language processing (NLP) and large language models (LLMs), to filter data and minimize false positives, thereby streamlining the identification of true bad actors. The system continuously monitors customer and vendor populations, providing real-time alerts for emerging risks, and ensures scalability for large financial institutions????.
Key features of SaifrScreen include bulk adverse media screening and continuous monitoring of customer and vendor populations. The solution leverages unstructured data to capture threats as soon as they are associated with wrongdoing, offering a more timely and comprehensive risk assessment. The AI models prioritize the highest probability risks, reducing the burden of false positives and enhancing the efficiency of compliance teams. Customization options allow financial institutions to tailor the AI models to specific crime types and date ranges relevant to their needs, and feedback mechanisms enable continuous improvement of the system based on user input????.
Overall, SaifrScreen aims to help financial institutions maintain a robust defence against financial crimes by providing precise, actionable risk management solutions that integrate seamlessly into existing compliance workflows. For more information on SaifrScreen and its capabilities, you can visit the Saifr website.
SEON
SEON offers a comprehensive suite of tools to combat financial crime in banking and capital markets. The platform uses advanced digital footprinting and device intelligence to secure onboarding processes, ensuring fraudulent accounts are blocked from the start. Real-time activity monitoring accelerates transaction validations, enhancing user experience while preventing fraud. AI-driven insights allow for the creation of custom rules to improve fraud detection and reduce manual reviews. Additionally, SEON integrates AML screening and monitoring, consolidating compliance efforts into a single platform to streamline operations and improve efficiency.
Socure
Socure’s Sigma Identity Fraud solution offers an integrated approach to identity fraud prevention by leveraging predictive signals across personal identifiable information (PII), digital, and behavioural risk dimensions. It auto-approves over 95% of applicants, reduces manual reviews to less than 5%, and delivers near 100% accurate identity fraud decisions. The solution includes advanced machine learning models, a comprehensive 360-degree Identity Atlas view, and entity profiling that incorporates digital footprints for a dynamic assessment. Additionally, Sigma Identity Fraud boasts a 20x return on investment by minimizing ID fraud losses and false positives.
Sumsub
Sumsub provides a comprehensive identity verification platform designed to combat financial crime in banking and capital markets. The platform offers user verification, including ID verification, liveness checks, and document-free verification, ensuring compliance and fraud prevention. It supports AML screening, checking against PEP, sanctions lists, and adverse media. Sumsub also monitors transactions to detect suspicious activity, employs behavioural fraud detection, and ensures secure customer onboarding. Additionally, the platform integrates with various systems for seamless implementation and provides customizable workflows to meet specific regulatory requirements.
SymphonyAI
SymphonyAI offers a suite of AI-driven financial crime prevention solutions tailored for the banking and capital markets industries. Their NetReveal Customer Due Diligence solution streamlines the onboarding process and enhances risk assessment through automated decision-making and compliance features. The SensaAI for AML provides robust transaction monitoring capabilities that adapt and scale, ensuring efficient detection and investigation of suspicious activities. NetReveal Sanctions Screening offers high accuracy in name and transaction screening while reducing false positives. Additionally, the Sensa Investigation Hub centralizes data and accelerates investigations by 70% using generative AI to support and streamline investigative processes.
https://www.symphonyai.com/financial-services/
Unit21.ai
Unit21 provides several key solutions for combating financial crime. Their Transaction Monitoring tool leverages diverse data sources to create a comprehensive view of customer behaviour, allowing for the configuration and testing of scenarios to enhance detection and reduce false positives. Real-Time Monitoring enables instant risk assessment and transaction blocking to prevent fraud losses. The Case Management system offers a single pane view for efficient case management, with customizable workflows to adapt to evolving risks. The Fraud Consortium provides secure, de-identified insights during onboarding and transaction monitoring, ensuring privacy and security.
Workfusion
WorkFusion’s AI Digital-Workers provide advanced solutions for various aspects of financial crime prevention and management in banking using digital personas. Evelyn, the Sanctions and Adverse Media Screening Analyst, excels at eliminating false-positive alerts by over 95%. Tara, the Transaction Screening Analyst, helps quickly manage payment alerts to ensure compliance. Kendrick, the Customer Identity Program Analyst, streamlines the KYC process, reducing it from days to minutes. Isaac, the Transaction Monitoring Investigator, automates the closure of low-risk alerts and escalates those requiring deeper investigation. Darryl, the Customer Due Diligence Program Analyst, processes ownership structure documents four times faster than manual methods. Kayla, the pKYC Review Analyst, efficiently monitors customers across various systems and sources to ensure compliance. Each of these Digital Workers enhances operational efficiency, mitigates risks, and supports regulatory compliance.
https://www.workfusion.com/digital-workers
So, there you have it, 22 to watch out for in AI-Powered FinCrime developments this year.
If you feel your firm should be included in this list, let us know at pr@a-teamgroup.com.
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