Oracle Financial Services Compliance Agent identifies and corrects vulnerabilities to reduce risks associated with anti-money laundering in the banking world.
Con 5.05 trillion dollars that are expected to be recycled only this year, banks are struggling to keep up with the costs and complexity associated with compliance regulations. To address this challenge, Oracle Financial Services introduced Oracle Financial Services Compliance Agent, a new AI-powered cloud service that now allows banks to run inexpensive, hypothetical scenario tests to adjust threshold values, limitations and controls to screen transactions, identify illicit activities and meet compliance requirements more effectively.
Jason Wynne, global vice president of finance, risk and compliance product development, Oracle Financial Services
Artificial intelligence and machine learning have enormous potential to increase the effectiveness of anti-money laundering and other financial crime detection programs, to ensure greater efficiency in the transaction modeling process. Putting Compliance Agent in the hands of those responsible for compliance and financial crime prevention will help banks thwart potential money laundering opportunities more quickly and cost-effectively.
As part of the solution portfolio AML – Anti Money Laundering –, compliance and financial crime prevention from Oracle Financial Services, Oracle FS Compliance Agent is designed to help financial institutions holistically evaluate and optimize the performance of their transaction monitoring systems (TMS) more cost-effectively and gather evidence empirical data to support business decisions. Thanks to this new service, banks can now:
Assess the risk profile of new banking products: Compliance Agent is able to objectively evaluate and measure the risk profile in terms of AML-anti-money laundering of new products and evaluate the controls to mitigate these risks in a cost-effective way, thus reducing the time-to-market of new products. The solution also provides the statistical basis necessary to reduce precautionary biases in the choice of anti-money laundering controls for new products. As is known, banks are under pressure to introduce ever new innovative financial products and this solution gives them the advantage of being able to do so without exposing the bank to new possibilities of money laundering and without incurring extensive and expensive assessments.
Proactively assess and mitigate risks arising from high-risk types: Compliance Agent can also proactively assess and reduce risks from high-risk types, such as human trafficking. Based on the results of an experiment, the user can now fine-tune controls and make the TMS (transaction monitoring system) more capable of spotting these types of suspicious transaction patterns. By fortifying the TMS for potential high-risk behavior, banks can proactively prepare for potentially unknown and specific attacks of those types. This is crucial to help banks maintain a good reputation with both regulators and customers.
Cheaper, faster, evidence-backed decisions for risk modeling
Additionally, Compliance Agent helps the teams that deal with compliance provide hard data to risk modeling teams and regulators so they have the best controls in place to monitor transactions efficiently, and update those controls to counter trends in money laundering tactics that continue to evolution. Banks can use Oracle’s AI-powered analytics to make evidence-based compliance decisions, faster and less expensively. Compliance Agent’s “what-if” capabilities allow users to evaluate multiple options and help them select the most suitable and optimal option. It can also provide insights into controls, such as transaction limits for banking products, for more rigorous monitoring of transactions.