Oracle Financial Services has developed cloud solutions aimed at aiding banks in addressing AML (Anti-Money Laundering) challenges.
In a press release on Monday (April 8), the company introduced the Oracle Financial Services Compliance Agent, designed to “detect and address vulnerabilities.”
Jason Wynne, the worldwide vice president of finance, threat, and compliance solution development at Oracle Financial Services, highlighted that empowering financial-crime compliance officers with the Compliance Agent could expedite the identification of potential money laundering activities in a more cost-effective manner.
The innovative platform allows banks to conduct cost-efficient hypothetical scenario tests to adjust thresholds and controls, enabling them to analyze transactions, pinpoint suspicious behavior, and enhance compliance adherence.
Furthermore, the Compliance Agent supports banks in assessing and enhancing the efficiency of their transaction monitoring systems.
Through this service, banks can assess the AML risk associated with new products, enhance controls to mitigate risks, proactively manage risks related to high-risk typologies, and streamline compliance decision-making processes.
Wynne emphasized the significant potential of AI and machine learning in enhancing the efficiency of anti-money laundering and financial crime detection programs, thereby optimizing transactional modeling processes.
According to insights from PYMNTS Intelligence, a growing number of financial institution executives are leveraging AI and machine learning technologies to combat money laundering, bank fraud, and other illicit activities. The report “Financial Institutions Revamping Technologies to Fight Financial Crimes” revealed that 71% of financial institutions are utilizing AI and machine learning for fraud prevention, with over 40% reporting an increase in fraud incidents.
In a similar vein, OTTO Payments, the payment division catering to the OTTO marketplace, announced its adoption of Hawk AI’s AML solutions for compliance purposes. Hawk AI’s AML solution incorporates explainable AI and an intuitive user interface to enhance efficiency.
Google, in a notable development, disclosed its utilization of AI to aid financial institutions in detecting money laundering activities. Unlike traditional rules-based transaction alert systems, Google’s Anti-Money Laundering AI assigns customer risk scores and adjusts underlying data to deliver more precise outcomes.
