Banks are facing a raft of difficulties identifying trade-based money laundering (TBML) according to global head of fraud analytics at NICE Actimize, Damian Matich.

He told the Risk.net web site that big banks particularly have a problem with data quality in paper-based trades and they need to clean it up to curb TBML.

Cumbersome processes

Digitising paper-based trades for monitoring is cumbersome according the fraud expert at NICE Actimize, which develops digital systems, including some that employ artificial intelligence, for detecting financial crime.

Matich told Risk.net that TBML is mostly paper-based and suggested specific and advanced technologies were needed to digitise that data that would curb trade-based financial crime.

Significant problems

He reckons there is “a whole series of issues that plague current banking systems and financial crime systems.”

In Matich’s opinion, most banks have “significant problems” making sense of the data available.

New KYC solution

NICE Actimize recently launched CDD-X, a know-your-customer (KYC) solution that employs artificial intelligence and machine learning with the aim of providing more accurate detection and customer risk scoring to reduce compliance risk.

The company claims that significant reductions in operational costs are realised through intelligent automation that cuts customer review times by up to 70 per cent.

Categories: Trade Based Financial crimes News