Nasdaq Verafin has introduced significant advancements to its artificial intelligence (AI)-based Targeted Typology Analytics.
This new suite of tools is designed to enhance detection capabilities for combating terrorist financing and drug trafficking activities. According to the 2023 Nasdaq Verafin Global Financial Crime report, these criminal activities drive trillions of dollars in illicit flows worldwide, with terrorist financing topping $11 billion and drug trafficking nearly reaching $800 billion.
Nasdaq Verafin’s sophisticated AI technology meticulously assesses multiple evidence points based on distinct financial crime indicators, which greatly enhances the ability to spot suspicious activities.
This AI-driven approach is aimed at helping banks meet the increasing complexity of regulatory requirements and align their strategies with national AML/CFT priorities, which include not only terrorist financing and drug trafficking but also human trafficking, fraud, and other significant laundering risks.
The new Targeted Typology Analytics are specifically designed to tackle high volumes of false positives that plague traditional rule-based AML systems. This product has been developed using Nasdaq Verafin’s highly effective analytical approach, which has previously shown significant success in identifying activities related to elder financial abuse and human trafficking. For instance, their targeted analytics for human trafficking have resulted in a significant number of investigations and Suspicious Activity Report (SAR) filings.
Nasdaq Verafin’s new analytic tool for terrorist financing provides banks with critical alerts about the risks of funding terrorist activities or organizations. This is achieved by leveraging unique consortium data to pinpoint shell companies that may be involved in moving illicit funds. This product is set to be rolled out to over 2,500 financial institutions following an extensive Beta testing phase.
The company is also in the process of developing a Targeted Typology Analytic for identifying potential drug traffickers, which includes advanced link analysis capabilities to expose drug trafficking networks. This is part of Nasdaq Verafin’s ongoing efforts to enhance the coverage and effectiveness of its financial crime fighting tools.
“We are committed to delivering innovative solutions to help banks more efficiently and effectively fight evolving financial crime threats, while navigating an increasingly complex regulatory environment,” said Stephanie Champion, EVP and Head of Financial Crime Management Technology at Nasdaq Verafin. “Our approach provides a step change towards disrupting some of the most nefarious crimes that have deep economic and societal impacts and are severely impacting the financial industry.”
“As an industry, we continuously need to challenge the status quo for how we fight financial crime and money laundering schemes – conventional broad approaches are no longer adequate to keep ahead of financial crime risk. Our AML approach maximizes efficiency with compliance automation, allowing banks to redirect resources on higher-value activities and more effectively fight financial crime with Targeted Typology Analytics,” said Rob Norris, SVP and Head of Product Strategy, Financial Crime Management Technology, Nasdaq Verafin.
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