HSBC deploys industry first automated AML system
UK-headquartered bank HSBC has deployed an automated anti-money laundering (AML) and sanctions screening system in its global trade and receivables finance (GTRF) business.
In what the bank is calling an “industry first”, the AML system will use big data, analytics and contextual monitoring to “detect and disrupt crime in international trade”.
It will combine bank data and external data like company ownership information to identify links between counterparties.
According to HSBC, the software will monitor all trade finance transactions against more than 50 different scenarios which indicate signs of money laundering.
Adrian Rigby, COO of GTRF at HSBC, says the newly deployed system marks a “significant milestone” for the bank’s approach to detecting financial crime.
He adds: “The introduction of the first automated AML capability in the trade finance industry enables HSBC to more effectively concentrate our resources on genuine financial crime risk within our business and make trade safer for customers and society”.
The contextual monitoring system was developed by artificial intelligence (AI) firm Quantexa, into which HSBC invested $20 million in August 2018.
Vishal Marria, CEO of Quantexa, describes how the solution, built with the Quantexa platform, uses billions of data points to provide an entity resolution and network intelligence framework which references over 40 billion financial transactions.
“Using this technology, customer activities can be continuously assessed and scored for risk. This level of contextual monitoring improves accuracy, and decision making, while providing insight into data relationships never before possible,” says Marria.