Oracle has revealed its AI-powered platform, Oracle Financial Services Compliance Agent, designed to assist banks in reducing the risks associated with money laundering. Prevention of such criminal activity has become an ever more significant concern for financial institutions, with expectations that around $5.05 trillion will be laundered in 2024 alone, Oracle states. For many banks, the scale of anti-money laundering efforts places immense pressure on resources, necessitating efficient and effective compliance processes.
The Oracle Financial Services Compliance Agent offers a cost-effective solution for banks, allowing them to carry out hypothetical scenario testing, thus enabling them to adjust thresholds and controls. This innovative system is designed to identify potentially fraudulent activity and to ensure that compliance standards are met. The overall aim is to support financial institutions in their evaluation and performance optimisation of their transaction monitoring systems (TMS) in a more cost-effective manner. Furthermore, the Compliance Agent provides valuable empirical data to support business decisions.
Jason Wynne, Global Vice President of Finance, Risk and Compliance Product Development at Oracle Financial Services, commented on the potential benefits of the new service: "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 modelling process. 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."
The Oracle Financial Services Compliance Agent is part of the Oracle portfolio, geared toward combating money laundering and financial crime. Its primary objective is to aid financial institutions in the assessment of risk profiles for new banking products. The Compliance Agent can objectively evaluate and measure the money laundering risk profile associated with new products and determine controls to mitigate these risks in a cost-effective way. This ultimately speeds up the time it takes to bring new products to market.
Moreover, the Compliance Agent also enables financial institutions to proactively assess and mitigate risks arising from high-risk typologies, such as human trafficking. For instance, it can adapt controls and enhance the TMS's capabilities to identify suspicious transaction patterns related to these high-risk typologies. This proactive approach is vital for maintaining a bank's standing with regulators and customers.
Oracle's Compliance Agent is designed to support compliance teams, providing them with evidence to assure risk teams and regulators that robust controls are in place. The platform utilises AI-powered analytics, allowing for evidence-based compliance decisions to be made more swiftly and economically. 'What-if' capabilities offer users the ability to evaluate multiple options, enabling them to select the most suitable and optimal option. This innovative system offers a more robust and strengthened transaction monitoring approach, keeping up the fight against the continuous advancements in money laundering tactics.