Insights
Can banks ever achieve 100% compliance with international sanctions?
According to an article in the February 5th, 2024, Financial Times, an Iranian state-owned oil company, Petrochemical Commercial Company Iran (PCC), used UK-registered front companies to evade US...
Where is the Gen AI Easy Button?
The buzz around Gen AI has reached a fever pitch. At the recent WEF conference in Davos, it was all anyone wanted to discuss. Sorry ESG. Sorry Crypto. As my daughter would say – “you are so last...
User Experience is a Big Factor in Preventing Financial Crime
NASDAQ’s Verafin business unit released its 2024 Global Financial Crime Report this week, highlighting the scale of the problem with an estimated $3.1 Trillion in illicit funds flowing through the...
What are Few-Shot Prompts?
We’ve discussed how variability in a large language model (LLM) output is one of the biggest challenges to creating an effective AI-driven application. If you ask the same question to an LLM-based...
Can an AI-based Digital Twin improve the efficiency and effectiveness of your controls
Delivering financial services products requires the coordination of many different processes, capabilities, and organizations. When you consider the detailed attributes of the customer,...
Are we winning the war on financial crime?
The Financial Crimes Enforcement Network (FinCEN), a unit of the US Treasury Department, recently released its “Year in Review for FY 2023” report. The report highlights the collaboration between US...
The Risk of Prompt Transformation
The recent controversy around Google’s image generation where it is accused of engineering its Gemini AI application to produce “woke” images intentionally highlights a concept in AI development...
Chinese Money Laundering Case Highlights Challenges with Crypto
There is an interesting case in the UK where a woman, Wen Jian, is accused of helping an alleged Chinese fraudster, Qian Zhimin, laundering the proceeds of a $6.3B fraud scheme using Bitcoin. Qian...
Regulators Looking to AI to Combat Financial Crime
In a recent interview, Donna Achimov – the Chief Compliance Officer and Deputy Director of Canada’s FINTRAC financial intelligence unit – highlighted how they increasingly use artificial...
Should I use RAG to fine-tune my GenAI Application?
Creating and training large language models (LLMs) is an expensive and challenging process that most organizations don’t have the resources and capabilities to undertake. So, how do I get an LLM to...
Can Social Network Analysis Improve AML Detection in Transaction Monitoring?
Most financial institutions agree that their current AML transaction monitoring systems false positive rates range from 85% to 95%. These results beg the question of why do something...
The contrasting paths of two hot sauce manufacturers show that managing exposure on multiple fronts is essential.
It was the best of times, it was the worst of times. The divergent fates of two rival condiment businesses — the best of times for McIlhenny Company, maker of well-known Tabasco-brand hot sauces,...
Do Faster Payments Facilitate Financial Crime?
The world is moving to real-time or near-real-time payments. The G20 established a Roadmap for enhancing cross-border payments in November of 2020. The roadmap aims to reduce costs and increase...
Is it Time to Consolidate Your Surveillance Infrastructure?
Financial institutions have multiple obligations to surveil the activity and behavior of their clients, counterparties, and associates. The scope of these obligations is growing as a higher...
How do we harden a generative AI application?
The release of ChatGPT to the public in November of 2020, along with the APIs that allowed developers and businesses to integrate it into their applications and services, has created tremendous...
Can AI Improve Your Client’s Experience with Financial Crime-Related (FCC) Compliance Processes?
Most conversations about using AI in financial crime compliance programs focus on efficiency, especially reducing the rate of false positives. Most transaction monitoring programs have false...