Hawk’s Post

What's the difference between a rules-based approach to fincrime detection and an AI-based approach? “With AI systems, it's very easy to retrain the algorithm...whereas with some of the older technologies, it's quite a challenge to rewrite the reprogram the way the machine thinks. And if you're in an adversarial world, then you've got to keep up because the criminals won't wait." - Michael Shearer, Chief Solution Officer at HAWK:AI in an interview with PYMNTS. Read this article to understand how AI requires a different approach when it comes to fincrime detection and what risk stewards need to consider: https://lnkd.in/dYXwHxuv We also discussed this topic in-depth on a recent webinar with ACAMS. We shared experiences of using AI for AML purposes and explained the benefits AML professionals see from using AI. What was covered: - Taking a new approach to AML risk detection - Training AI with quality transaction and customer data - Explaining the AML risks detected by AI See the webinar here: https://lnkd.in/eNpQ4bPM For a demo on how HAWK:AI uses explainable AI to help banks and payment providers, visit: https://hawk.ai/ #aml #fincrime #acams #banking #bankingtech #compliance #ai #machinelearning #rulesbasedtechnology

🔎 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗠𝗼𝗻𝗶𝘁𝗼𝗿𝗶𝗻𝗴: 𝗜𝗺𝗽𝗿𝗼𝘃𝗶𝗻𝗴 𝗔𝗰𝗰𝘂𝗿𝗮𝗰𝘆 𝗮𝗻𝗱 𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 🔍 Transaction monitoring is a crucial part of the AML and Fraud industry. But how can we accurately monitor millions of transactions every day? AI is the logical answer. By involving AI in the process, your system can analyse a customer's transaction behaviour and build a profile, allowing the system to pick up on any "out of the ordinary" suspicious activity. This produces more accurate alerts and reduces false positives. Advanced segmentation is very helpful when building personal profiles, after all, Amanda's shoe addiction spend, Bob's fine art collection purchases or Vito Corleone's lump sum dealings may all produce alerts from time to time, but not for the same reasons. Final Note: AI is an augmentation tool programmed by people for people. Without ongoing feedback from AML and Fraud Teams, systems become stuck in a loop. Your job is still safe, so stay passionate! #ai #artificialintelligence #transactionmonitoring #frauddetection #aml

🚮Ditch the #Rules,🤝Embrace the #Risk: How AI is Transforming AML Compliance In the high-stakes game of financial crime prevention, #traditional #rule_based transaction monitoring is like trying to catch a speeding bullet with a net⚾. It's inefficient, outdated, and often misses the mark. Financial institutions are faced with the dual challenge of staying #compliant and agile in an ever-evolving landscape of #financialcrime. They're tired of being stuck in a one-size-fits-all rulebook, yearning for a more adaptive and tailored risk-based approach. The good news is that the game has changed! #AI is revolutionizing AML compliance, transforming it from a tick-box exercise into a proactive, intelligent, and risk-driven strategy. It doesn't rely on a rigid rulebook; instead, it learns from #patterns, adapts to new threats, and detects suspicious behavior even when it doesn't fit the usual mold. Our latest #whitepaper with FINTRAIL explores how AI is revolutionizing transaction monitoring, sharing case studies, and addressing common concerns. Say goodbye to false positives and embrace a more effective approach to risk detection. 📈🕵️♂️>>>https://hubs.li/Q029yrz40 #AML #fintech #crossborder #sonar #financialcrimecompliance

Next-generation AML uses AI and machine learning to make AML programs more efficient and effective. Discover six tips to help you succeed with this analytics-based approach to uncovering financial crime threats while streamlining processes and reducing costs. #sas #analyticsinsights #aml #fraud #financialcrime #ai #ml https://lnkd.in/gAJ4fUhZ

HAWK:AI has treats in store if you're coming to the AML & ABC Forum in London on March 5-6! As well as Tony's Chocolonely chocolate bars, we'll be delivering an insightful presentation into how AI can help your AML operation. Join Will Rodd on Tuesday March 5th at 3pm for A Practical Guide for Implementing AI Into Your Anti-financial Crime Program. It's a great chance to gain insights on the AI adoption process - mitigating any risks, overcoming barriers, and realizing the significant benefits that AI can bring in detecting criminal activity and reducing false positives. If you can't make the AML & ABC Forum, join us instead on Tuesday March 19th on our webinar with ACAMS - our very own Michael Shearer, former Group Head of Compliance Product Management at HSBC, will be sharing his experiences of implementing machine learning in the anti-financial crime operation of a global bank. Register now: https://lnkd.in/eNpQ4bPM If we can work out how to share chocolate bars via webinar, we'll do that too! See you there! #aml #fincrime #acams #amlabcforum #webinar #ai #machinelearning #chocolate

What nightmare scenarios could AI create in AML? Here are some use cases that worry the industry 👇 - Criminals could use AI to create synthetic identities, combining real and fake data to register for bank accounts used in money laundering schemes. - AI algorithms could be programmed to execute financial transactions that mimic legitimate behaviors, making detection more difficult. - AI can potentially be trained to recognize anti-money laundering patterns and adapt criminal activities to avoid detection. But it's no longer just hypothetical. Alarming stories about criminals' use of AI are appearing more frequently. It's also clear that AI is a powerful tool in combating financial crime, and Fincrime professionals need to catch up as its impact can no longer be ignored. But where do we draw the line between a seasoned human professional and an AI with the same data? What nuances can a human detect that a language learning model might miss? Can AI truly interpret and deduce complex scenarios? In the latest episode of 🔴 The Laundry, Marit Rødevand is joined live on stage by governance, compliance, and AML expert Viveka Strangert, as well as Christian Lynne Wandt, CEO of MUM, to tackle these questions and more! Subscribe to the podcast now and join thousands of proud Fincrime nerds already part of the 🔴 The Laundry community! #AML #Compliance #Financialcrime #KYC / Fredrik Riiser / Sebastian Desand

AI in interaction with humans, which risks do you see now and in the future? Listen to my thoughts in The Laundry Pod.

On behalf of our Chapter Co-Chairs Meryl Lutsky and Susan White, CAMS and the rest of the all-volunteer Board of the ACAMS New York Chapter we request you “Save the Date” for our next in person learning event on Tuesday, February 27th, 2024 from 6:00PM - 8:30PM EST, titled "When is it Appropriate to Use AI in AML?” sponsored by HAWK:AI and in conjunction with the Fordham Gabelli School of Business, The Center for Professional Accounting Practices at Fordham University (113 West 60th Street 12th floor).   Panel: To be Announced Using artificial intelligence (AI) technology in Anti-Money Laundering (AML) processes has become a critical consideration for financial institutions in their efforts to better comply with regulations and combat financial crime. This discussion aims to explore the nuanced decision-making behind the adoption of AI in AML, identifying key scenarios where its use is most effective and appropriate. Panelists will examine the advantages and challenges of using AI in AML, providing actionable insights to inform strategic decisions, optimize detection capabilities, and enhance overall effectiveness of AML programs. 

How can banks and other financial institutions benefit from using AI in their anti-money laundering operations? We've outlined four key areas where AI can make a significant impact: Anomaly Detection, Pattern Detection, False Positive Reduction, and pKYC. AI is no longer an option in AML. It is essential for achieving the efficiency and effectiveness that is needed to fight financial crime and achieve regulatory compliance. Swipe through and read more about the four areas where AI can improve performance. Find the full article at: https://lnkd.in/dZ9tsiV4 Alternatively, request a demo to see how Hawk uses explainable AI to help banks and payment providers fight financial crime. Visit https://hawk.ai/ #aml #fincrime #ai #artificialintelligence #banks #usecases #fraud #financialinstitutions

Excited to announce that the Disrupt Fincrime series will be touching down in the US next!     Want to learn how your compliance team can discern the true value of AI when it comes to AML?     Then register now.     #AML #Financialcrime #Compliance #RegTech #AI