After a successful trial launch with HSBC, Google Cloud has launched AML AI, its anti-money laundering AI-powered product that aims to help global financial institutions better detect money laundering.
Money laundering has been one of the biggest—and costliest—challenges for the financial services sector. Through this new effort, Google Cloud is betting on AI to monitor money laundering activity and, overall, improve financial crime risk detection.
HSBC, a Google Cloud customer, found success after trialing the product. The company detected two to four times more true positive risk, and saw alert volumes decrease by more than 60%.
“Google Cloud’s AML AI has significantly improved HSBC’s AML detection capability. Google’s models are already demonstrating the tremendous potential of machine learning to transform anti-financial crime efforts in the industry at large,” said Jennifer Calvery, Group Head of Financial Crime Risk and Compliance at HSBC in a prepared statement. “By enhancing our customer monitoring framework with Google Cloud’s sophisticated AI-based product, we have been able to improve the precision of our financial crime detection and reduce alert volumes meaning less investigation time is spent chasing false leads. We have also reduced the processing time required to analyze billions of transactions across millions of accounts from several weeks to a few days.”
Preventing Money Laundering
Because so many organizations are fighting against money laundering, it’s especially critical that the right tech tools are used. And during a time of increasingly bold regulations, AI-infused tech solutions are helping many companies meet AML obligations.
In addition to leveraging the right tech tools, collaboration is also important. In the U.S., the Anti-Money Laundering Act of 2020, the Patriot Act, and the Bank Secrecy Act, advocates for collaboration, as well as the use of advanced technology to fight financial crimes and the financing of terrorism.
Previously, the compliance was primarily required for financial institutions and banks, but has since been extended to businesses as well—to aid them in not only protecting themselves, but their customers as well.