Retail AML

Rules-based transaction monitoring systems have several limitations and challenges, which have historically hindered their effectiveness in detecting and preventing financial crimes.  

For example, the rules and thresholds need to be manually created and updated, making the system less adaptable to evolving and emerging threats.  Similarly, rules-based systems also typically analyze individual transactions in isolation and may not provide a comprehensive view of customer and counterparty behavior or relationships. They may miss the connections between seemingly unrelated transactions or accounts, which can be crucial in identifying more complex fraud networks or money laundering schemes. 

In contrast, by combining multiple internal and external datasets all at once, Contextual Monitoring transforms the view of risk to a gain clearer understanding of customers, counterparties, their relationships, and behaviors in real time. Using advanced Entity Resolution and network generation techniques, Contextual Monitoring focuses on holistic relationships rather than transaction risk in isolation. 

This added context helps to identify hidden risk and generates fewer, more accurate alerts. Institutions can reduce rising compliance and operational costs and conduct more effective and efficient intelligence-driven risk processes without replacing existing systems. 

Turning data into intelligence is imperative for reducing manual processes, identifying critical connections and breaking down silos between teams. For AML investigations, shifting to an intelligence-led approach goes beyond a single event, relationship or activity enabling a more holistic understanding of customers, employees, counterparties and their related risk. With the broad capabilities of Quantexa’s platform, intelligence officers have a powerful tool that can run different analytical tasks, covering a risk-based approach and integrating third-party data and external sources for deeper investigation. Unlike traditional systems, Quantexa's AML software visualizes hidden connections through additional context.

Evolving AML intricacies and typologies driven by multiple channels, lines of business and products​ have driven major challenges in financial services. With Quantexa's Decision Intelligence platform, Quantexa's AML software can transform a banks approach to financial crime compliance. Improving risk coverage, identifying complex typologies, pinpointing real risk, reducing false positive and uplifting efficiencies.