Nasdaq Launches Anti-Money Laundering Investigation Technology
September 16 2020 - 07:00AM
Today Nasdaq (Nasdaq: NDAQ) announced the launch of the
cloud-deployed Nasdaq Automated Investigator for AML, the first
automated solution for investigating anti-money laundering (AML)
for retail and commercial banks and other financial institutions.
Designed, built and offered in partnership with UK-based Caspian,
Nasdaq Automated Investigator for AML further expands Nasdaq’s
global efforts in combatting financial crime and promoting market
integrity in the capital markets and beyond.
“The financial industry is making a structural shift to more
intelligent technologies and real-time adaptive analytics based on
much larger, more diverse data pools to detect and investigate
financial crime,” said Valerie Bannert-Thurner, SVP and Head of
Sell-side and Buy-side Solutions, Market Technology, Nasdaq. “As
both a market operator and technology provider, we have a
commitment to the capital market ecosystem to keep markets healthy
and safe to fight financial crime. Through the years of expertise
we have gained as an industry leader in trade surveillance, we are
both moving beyond our alerting capabilities to investigation, and
expanding our solutions to help eradicate illegal money
transactions.”
The Automated Investigations Management space is a historically
underserviced area of financial crime operations that presents a
significant gap in the investigations management process for banks.
Many techniques are used to launder money, causing banks to cast a
wide net to catch perpetrators. The wide scope of surveillance
means AML Transaction Monitoring (AMLTM) systems could potentially
trigger as many as 200,000 to 300,000 alerts a month in extreme
cases. In response, many banks have tightened the parameters within
their AMLTM systems or added additional scoring mechanisms, thereby
reducing alerts. However, when banks tune their models too tightly,
they run the risk of missing criminal activity and exposing
themselves to regulatory sanction. Even those that have tightened
their parameters can experience 20,000 to 25,000 alerts in a
month.
To support these efforts, the Nasdaq Automated Investigator
ingests alert data from any transaction monitoring system, collates
all of the necessary data required for analysis, analyzes the data
and then replicates complex human decision making to provide a
clear, auditable justification for all alerts regardless of volume,
and in seconds. The technology is powered by multiple variants of
artificial intelligence including both supervised and unsupervised
learning in conjunction with business rules to provide a
significant increase in operational efficiency. Beyond AML, Nasdaq
sees broad applicability for this new category of solutions that
the Nasdaq Automated Investigator has established, and plans to
roll out functionality across complementary financial crime
segments in the future.
“We have designed the Nasdaq Automated Investigator to automate
the complex stages of an alert investigation process with tools
focused on the mechanics and effectiveness of the actual
investigation,” said Darren Innes, Head of AML Technology,
Sell-Side and Buy-Side Solutions, Nasdaq. “Our solution improves
the manually intensive anti-financial crime process by fully
automating all stages of the existing manual alert investigation
process to deliver accurate, consistent decision-making at scale.
This pinpoints the highest-probability of nefarious activity for
analysts to prioritize, and provides them a layer of demonstrable
explainability that does not currently exist in financial crime
investigations.”
Nasdaq's market technology powers more than 250 of the world's
market infrastructure organizations and market participants,
including broker-dealers, exchanges, clearinghouses, central
securities depositories and regulators, in over 50 countries with
end-to-end, mission-critical technology solutions.
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the
capital markets and other industries. Our diverse offering of data,
analytics, software and services enables clients to optimize and
execute their business vision with confidence. To learn more about
the company, technology solutions and career opportunities, visit
us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.
Media Contacts
Ryan WellsMobile: +1 646 648 3887ryan.wells@nasdaq.com
Yan-yan Tong Mobile: +46 (0)73 449 66 83
yan-yan.tong@nasdaq.com
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