HSBC has rolled out a new anti-money laundering (AML) system and an automated sanctions checking system to detect and disrupt financial crime in international trade.

The systems are part of the bank’s ongoing efforts to improve financial crime detection and HSBC claims they represent an industry first, with a new customer surveillance system that uses big data, advanced analytics and automated ‘contextual monitoring’ to detect financial crimes.

Leveraging expertise

Developed with financial technology (FinTech) firm Quantexa, the solution leverages HSBC’s expertise in network analytics to enable the bank to better identify suspicious patterns and potential criminal networks by combining customer and counterparty trade information, transactional data and external insights.

The AML system is currently active in the UK and Hong Kong and is being rolled out across HSBC’s global network.

Data mix

The new system combines bank data and external data, such as company ownership information, to identify links between counterparties and transactions and map out networks.

It automatically screens all trade finance transactions against over 50 different scenarios that indicate signs of money laundering, such as associated networks and payment patterns.

The Quantexa platform meanwhile uses billions of data points to provide an entity resolution and network intelligence framework which references over 40 billion financial transactions.

Categories: Trade Based Financial crimes News