HSBC Introduces Industry-Leading Financial Crime Detection Systems
Written by Quantexa
Published: 25th Sep 2019
HSBC Global Trade and Receivables Finance (GTRF) business has deployed an industry-leading Anti-Money Laundering (AML) system and an automated sanctions checking system as part of its ongoing efforts to improve financial crime detection.
In an industry first, the new customer surveillance system uses big data, advanced analytics and automated ‘contextual monitoring’ to detect and disrupt financial crime in international trade. The contextual approach, developed with Quantexa, builds on HSBC’s expertise in network analytics to enable the bank to better identify suspicious patterns and potential criminal networks by combining customer and counterparty trade information, transactional data, and external insights. It is currently active in the UK and Hong Kong and is being rolled out across HSBC’s global network.
Adrian Rigby, COO of GTRF at HSBC, said: “This new capability marks a significant milestone in the bank’s intelligence-led approach to detecting financial crime. 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 new system combines bank data and external data, such as company ownership information, to identify links between counterparties and transactions and map out networks. It automatically screens all trade finance transactions against over 50 different scenarios that indicate signs of money laundering, such as associated networks and payment patterns. This is more than double the average number of checks against indicators at a transactional level. It also provides investigators with an enhanced ability to analyze counterparty activities and relationships to better identify potential financial crime.
Vishal Marria, CEO of Quantexa, added: “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.”
As the world’s largest trade finance bank, HSBC screens over 5.8 million trade transactions a year for signs of money laundering and other financial crime. One of the key challenges in detecting financial crime is establishing where people or companies are acting together to move money around the globe. Now, if there are concerns about the activities of a counterparty, a financial crime investigator can rapidly build a detailed picture of the links and transactions within a customer’s global network and identify previously unknown details.
Coinciding with the new AML surveillance launch, HSBC has automated first line sanctions checking using advanced algorithms and machine learning technology. Automated sanctions checking is now live in India and will be deployed in 41 markets by year-end.
The automated solution, developed in-house, produces an instant response. By removing manual checks it reduces the processing time for each search and significantly eliminates false positives. Since HSBC initiates around one million sanctions screening submissions a month, this significantly improves the bank’s control environment as well as improving transaction speed for clients.
Collectively, these innovations will help HSBC to fight financial crime through accurately identifying criminal activity and networks that might not have been possible previously, ultimately helping to protect customers and their communities from financial crime.
You may be interested in…
Deloitte and Quantexa Partner to Tackle Global Illicit Finance and Economic Crime Risk
Deloitte will utilise Quantexa’s Contextual Decision Intelligence (CDI) platform to enable its clients to leverage technology and analytics as part of robust Economic Crime Governance and Risk Management Frameworks.
Danske Bank Deploys Quantexa’s AI Platform For Financial Crime Detection
Danske Bank uses Quantexa’s platform to uncover the real-world context in data to detect financial crime and improve investigations.
Quantexa Joins Award-Winning Innovation Center Tomorrow Street
Quantexa’s technology provides powerful insights to businesses by identifying relationships between entities and hidden links within Tomorrow Street’s data sets.
Quantexa Adds Industry Leaders To Advisory Board To Support Global Growth
Former JP Morgan Chase CIO and ex-chairman of KPMG join Quantexa’s advisory board following successful $65m Series C funding round
Quantexa Appoints Laura Hutton as New Chief Customer Officer
Quantexa has appointed Laura Hutton as new Chief Customer Officer to accelerate our commitment to putting the voice of the customer at the center of the organization.
Quantexa Raises $64.7m in New Series C Funding to Drive Hyper-Growth in Big Data and Analytics Ecosystem
Additional investments will expand quantexa’s global and industry footprint and its contextual decision intelligence platform as category-leading technology
Reduce the tax gap, identify fraud and non-compliance, and operate as efficiently as possible with limited resources.
Reveal hidden risks and detect criminal activity faster. Reduce false positives to manage the cost of compliance. And improve investigations to make faster and more consistent decisions at scale.
Customs Agencies & Border Control
Contextual Decision Intelligence enables faster decisions, increased revenue collection and enhanced compliance. The Quantexa platform enables Customs and Border agency teams to analyze data successfully, automate and accelerate decision-making, and achieve improved results.
Identify potentially fraudulent activity by looking at people or transactions in isolation. Understand the context surrounding the organizations you do business with to make fast, accurate decisions.
Fraud, Waste & Abuse
Empower your team with the best tools available for today’s challenges to identify and prevent fraud, waste and abuse with contextual decision intelligence software.
Understand your customers, their business structures and supply chains. Make better lending decisions, faster. And support digital risk transformation.
Know Your Customer
Reduce significant manual effort across onboarding, refreshes and remediation. Automate checks, implement continuous monitoring, and focus on contextual decision making.
Generate a complete view of the context around your customers and prospects to build better relationships, reduce attrition and find hidden opportunities.
Master Data Management
Connect all data—internal and third party—to create a joined-up, contextual view of all the relationships between your customers and every other domain.
See how we help to reduce costs and improve coverage for financial crime compliance.
See how our platform uses contextual analysis to turn data into a high value asset.
See how our platform uses financial crime technology to enhance your existing IT ecosystem.