Application of Artificial Intelligence in Transaction Monitoring

There is an increasing demand for financial crime mitigation and regulatory compliance solutions that take care of the future demands of the financial services industry. Adapting the AML processes and platforms to combat the changing ways of criminal activities has become even more critical as financial crimes grow using banking channels. Given the need for disruptive technological enhancements, the global regulatory bodies are recommending automation enhanced by machine learning. In the latest report by FATF that outlines the improvements financial institutions must make in their respective jurisdictions, it is evident that they have paid close attention to transaction monitoring. Since global digital transaction volumes have grown so much in the last decade, transaction monitoring costs are dramatically increasing as well. This also burdens compliance officers since investigating the number of suspicious transactions takes a toll.