Backing the Financial Industry in its Fight against the Money-laundering Epidemic

Oracle Financial Services has officially announced the launch of Oracle Financial Services Compliance Agent, which is designed to help banks mitigate the risk of money laundering. According to certain reports, the stated Compliance Agent is essentially an AI-powered cloud service capable of running inexpensive, hypothetical scenario testing, something it does to let the banks sort through transactions, identify nefarious activity, and meet compliance requirements more effectively. Talk about the whole value proposition on a slightly deeper level, we begin from the solution’s ability to objectively evaluate and measure the AML risk profile of new products and controls, thus reducing their time to market. Furthermore, the all-new Compliance Agent can deliver statistical basis needed to reduce conservative bias in deciding AML controls for new products. The latter feature is especially useful in the case of institutions that are under pressure to introduce innovative products but must do so without exposing the bank to new avenues of money laundering and higher costs. Anyway, almost like an extension of the previous feature, the solution in question also comes well-equipped to assess and diminish risks from high-risk typologies, such as human trafficking. Hence, banks can rely on it for preparing their transaction monitoring systems to catch these types of suspicious transaction patterns.

“AI and machine learning have tremendous potential to increase the effectiveness of anti-money laundering and other financial crime detection programs to deliver higher efficiencies in the transactional modeling process,” said Jason Wynne, global vice president of finance, risk and compliance product development at Oracle Financial Services. “Putting Compliance Agent in the hands of financial-crime compliance officers will help enable banks to thwart potential money laundering opportunities more quickly and economically.”

Then, there is the prospect of cheaper, faster, and evidence-supported decisions for risk modeling. You see, by providing evidence to model risk teams and regulators, Oracle’s new Compliance Agent ensures that every user has the best controls in place to monitor transactions efficiently. Not just that, the solution also allows for updating those controls so to aid your case against continuously advancing trends in money laundering tactics. Joining the same is Compliance Agent’s “What if” capabilities. These capabilities enable users to evaluate multiple options and select the one most suitable for them. In case that didn’t sound like much, then we must mention how the solution can also generate insights about controls, such as transaction limits for banking products, for stronger transaction monitoring.

The development in question delivers a rather interesting follow-up to one report which expects money worth more than $5.05 trillion to be laundered this year alone.

As for what makes Oracle Financial Services an ideal candidate to solve such a massive problem, the answer resides in its comprehensive set of integrated digital and data platforms that help banks and insurers deliver next-generation financial services. These services, at the moment, are concerned with retail banking, corporate banking, payments, asset management, life insurance, annuities, and healthcare payers etc. The company’s excellence in what it does can also be understood once you look at its clientele, which includes the likes of Santander, Credit Agricole, Deutsche Bank, Diebold Nixdorf, HSBC, Houlihan Lokey, Macquarie, Vanguard, and plenty of other heavyweights