Our customer tracks millions of financial transactions every day and must comply with local and international AML regulations that require them to report any abnormal behavior. A rules-based system was in place but they still relied on looking only for the same tried-and-true indicators that may no longer be relevant due to changing tactics and more sophisticated money laundering methods.
Our customer focused on building indicators using external data from the Explorium Enrichment Catalog that could point to troublesome transactions even on seemingly unrelated data. One of the big challenges they faced was meeting regulations about the use of personally identifiable information (PII). Our customer needed to find data that could highlight potentially illegal transactions without using data that could run them afoul of international data privacy regulations. To do this, they use Explorium to connect to a variety of contextual data sources to build new features, such as:
The new anomaly detection model helped our customer better understand and identify anomalous transactions. While not all anomalies point to money laundering, the more precise detection tools allowed them to cut down on the time they spend identifying and examining transactions that are flagged. Additionally, the company was able to improve their accuracy in detecting money laundering transactions by 15%, to 89% overall. The result was savings in their compliance efforts, both in money and time spent on each transaction. More importantly, they were able to offer faster services to customers without sacrificing security.
