New Oracle AI-powered cloud service helps banks mitigate Anti-Money-Laundering risks

Oracle Financial Services Compliance Agent identifies and remediates vulnerabilities to lessen banks AML threats and improve evidence-based decisions to mitigate model risk

With $5.05 trillion expected to be laundered this year alone, banks are struggling to keep up with the cost and complexity of compliance. To help address this massive challenge, Oracle Financial Services introduced Oracle Financial Services Compliance Agent. 

„The AI-powered cloud service enables banks to run inexpensive, hypothetical scenario testing to adjust thresholds and controls to sort through transactions, identify nefarious activity, and meet compliance requirements more effectively.” according to the press release.

“AI and machine learning have tremendous potential to increase the effectiveness of anti-money laundering and other financial crime detection programs to deliver higher efficiencies in the transactional modeling process,” said Jason Wynne – global vice president of finance, risk and compliance product development, Oracle Financial Services. “Putting Compliance Agent in the hands of financial-crime compliance officers will help enable banks to thwart potential money laundering opportunities more quickly and economically.”

Part of Oracle Financial Services portfolio of anti-money laundering (AML) and financial crime and compliance solutions, Compliance Agent is designed to help financial institutions holistically assess and optimize the performance of their transaction monitoring systems (TMS) more cost-effectively and gather empirical evidence to support business decisions. With the service, banks can:

What a compliance Agent can do

Compliance Agent can objectively evaluate and measure the AML risk profile of new products and evaluate controls to mitigate these risks cost-effectively, thereby reducing the time to market for new products. The solution also provides the statistical basis needed to reduce conservative bias in deciding AML controls for new products. „This is a win for banks that are under pressure to introduce innovative products but must do so without exposing the bank to new avenues of money laundering and incurring extensive and costly assessments.” the company said.

Compliance Agent can also proactively assess and diminish risks from high-risk typologies, such as human trafficking. For example, based on the results of an experiment, a user can tune the controls and make the TMS more capable of catching these types of suspicious transaction patterns. Fortifying the TMS for potential high-risk typology behaviors keeps banks proactively prepared for the unknown potential attacks specific to those typologies. „This is critical in helping banks stay in good standing with regulators and customers.” the company explained.

In addition, Compliance Agent helps compliance teams provide evidence to model risk teams and regulators so that they have the best controls in place for monitoring transactions efficiently and updating those controls to fight the continuously advancing trends in money laundering tactics.

„Banks can use Oracle’s AI-powered analytics to make evidence-based compliance decisions faster and cheaper. The “what-if” capabilities of Compliance Agent allow users to evaluate multiple options and help them select the most suitable and optimal option. It can also provide insights about controls, such as transaction limits for banking products, for stronger transaction monitoring.” the company concluded.