South Korea’s Shinhan Bank has introduced a big data-powered anti-money laundering (AML) system in its efforts to detect suspicious trade transactions and become more competitive in the international trade finance market.
Shinhan-Trade Based Money Laundering (S-TBML) uses artificial intelligence (AI), optical character recognition (OCR) and big data applications amongst other capabilities to help the bank automatically detect signs of money laundering and suspicious transactions.
Trade finance and forex
The system operates across the lender’s trade finance and foreign exchange functions to reduce the risk of Shinhan inadvertently participating in illicit transactions and represents another step in Korea’s oldest bank to strengthen its AML functions.
In January 2018, the banking subsidiary of Shinhan Financial Group separated its AML team from the compliance department to centralise AML management with the aim of better understanding of risks posed by both domestic and foreign entities.
Increased AML capacity
In the same year the bank teamed up with Shinhan DS, the financial ICT subsidiary of Shinhan Financial Group, to develop initially AI and OCR capabilities that would later be incorporated in S-TBML.
The bank’s AML team has grown since it was established as standalone unit and now has the equivalent of 65 full time staff.
Categories: Trade Based Financial crimes News