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Banks around the world are continuing to be penalized heavily for their inability to meet with ever-changing and complex financial regulations. Regulatory fines imposed in 2017 alone proved this to us in many ways. For example, financial intelligence regulator Austrac handed gaming giant Tabcorp a fine of AUD 45 M (USD 35 M) for non compliance, the highest ever civil penalty in corporate Australian history. We also saw U.S. authorities hit BNP Paribas with fines amounting to approximately USD 600 M for market misconduct and trader collusion that took place over 6 years. The big fines also keep coming for Deutsche Bank, the German lender was hit with about USD 630 million in penalties on a USD 10 billion Russian money-laundering scheme.
According to Boston Consulting Group, banks across the world have paid nearly USD 321 billion in fines since the financial crisis of 2007 and 2008, as the regulators are more focused than ever on compliance. Financial crimes go beyond just the monetary fines; the risk of accompanying reputational damages are hazardous as well. There is an increasing need for identifying solutions which enable firms to improve financial crimes detection and better manage compliance requirements. The current approach to compliance management is not sustainable. Financial institutions need artificial intelligence and machine learning capabilities to manage new and changing regulations. IBM Financial Crimes solutions can address this need for more sophisticated compliance management. Furthermore, IBM’s acquisition of and partnership with Promontory Financial Group adds risk management expertise to the existing cognitive-driven analytics and machine learning capabilities, to help our clients achieve lower costs and favorable results.
IBM Financial Crimes solutions is a suite driven by data and analytics to both detect threats in real time, but also prevent them from happening in the first place. Our solutions consist of:
- Financial Crimes Due Diligence with Watson:
Improve your overall time to complete Know Your Customer (KYC) records with streamlined and accurate processes enhanced by AI capabilities of Watson.
- Financial Crimes Alerts Insight with Watson:
Prioritize alerts, identify false positives and make better decisions with a cognitive Anti Money Laundering (AML) process.
- Surveillance Insight for Financial Services:
Deliver real-time supervision and surveillance capabilities to manage Conduct Risk (collusion and insider trading), Market Abuse, and Complaints.
- Financial Crimes Geographic Risk Insight:
Effectively guard against financial crimes by accurately evaluating the risk of money laundering and terrorist financing in specific areas across the globe.
- Safer Payments:
Improve transaction integrity within all-cashless payment channels with rapid fraud prevention capabilities.
IBM technology and solutions will better prepare you to fight financial crimes, helping you avoid reputational damage, reduce operational costs and regulatory exposure, and finally improve competitiveness.
IBM Financial Fraud Prevention