Nasdaq Verafin Announces Targeted Typology Analytics — An Innovative Approach to Fighting Financial Crime
September 23 2024 - 8:00AM
Business Wire
Leading AI-Based Anti-Financial Crime Offering including
Elder Financial Abuse and Human Trafficking Analytics Enhanced with
New Detection Capabilities for Terrorist Financing and Drug
Trafficking Activity
Today, Nasdaq Verafin®, leading provider of crime fighting
technology, announces enhancements to its robust suite of
artificial intelligence (AI) based Targeted Typology Analytics,
with new detection capabilities for terrorist financing and drug
trafficking activity. These destructive crimes are fueling
trillions of dollars in illicit flows globally, with 2023 estimates
topping $11 billion for terrorist financing and nearly $800 billion
connected to drug trafficking, according to Nasdaq Verafin’s Global
Financial Crime report. Leveraging more than 20 years of deep
domain expertise in anti-money laundering (AML), countering the
financing of terrorism (CFT) and fraud detection technology, Nasdaq
Verafin continues to deliver innovative new approaches to help
banks improve the efficiency and effectiveness of their AML/CFT
programs and ultimately safeguard the global financial system from
the multi-trillion-dollar epidemic of financial crime.
Different illicit activities have unique characteristics and red
flags that are indicative of risk of the specific underlying crime.
Nasdaq Verafin applies advanced AI techniques to risk-rate multiple
pieces of evidence based on specific indicators of the financial
crime typology to more effectively detect suspicious activity. This
approach helps banks stay ahead of evolving threats and manage
increasing regulatory expectations to align their programs to
national AML/CFT priorities, including terrorist financing, drug
trafficking, human trafficking, fraud and other critical money
laundering risks.
Targeted Typology Analytics address an industry-wide pain point
of high volumes of false positive alerts that result from
conventional rules-based AML systems. In developing new analytical
solutions, Nasdaq Verafin applies its proven approach from its
highly performant analytics for Elder Financial Abuse and Human
Trafficking that have proven to be more effective in identifying
suspicious activity associated with specific crime typologies.
Nasdaq Verafin’s targeted analytic to identify human trafficking
activity delivers exceptional performance, with as few as one in
four alerts resulting in a case investigation, and one in seven
alerts resulting in a bank filing a Suspicious Activity Report
(SAR).
“We are committed to delivering innovative solutions to help
banks more efficiently and effectively fight evolving financial
crime threats, while navigating an increasingly complex regulatory
environment,” said Stephanie Champion, EVP and Head of Financial
Crime Management Technology, Nasdaq Verafin. “Our approach provides
a step change towards disrupting some of the most nefarious crimes
that have deep economic and societal impacts and are severely
impacting the financial industry.”
The new Targeted Typology Analytic for terrorist financing
alerts financial institutions to the risk of funding for terrorist
activities or organizations, by leveraging Nasdaq Verafin’s unique
consortium data to identify shell companies used to move illicit
funds. Following an extensive Beta program, the release of the
terrorist financing analytic is expected to be released to its
customer base of more than 2,500 financial institutions later this
year. To further bolster coverage of threats, Nasdaq Verafin is
currently partnering with Beta customers to develop a Targeted
Typology Analytic to identify potential drug traffickers and
leveraging its advanced link analysis capabilities to uncover drug
trafficking networks.
Benefits of Targeted Typology Analytics:
- Delivers high quality results with fewer false
positives compared to conventional approaches and broad
rules-based systems, so investigators can focus on truly suspicious
activities.
- Uncovers patterns of criminal activity with exceptional
analytical performance by analyzing a wide range of behavioral,
transactional, and third-party data, as well as insights from
Nasdaq Verafin’s unique consortium data set of more than 2,500
banks.
- Contextualizes activity with visual investigation tools
by providing investigators with the key data and context-rich
insights needed to determine risk and expedite decisioning.
- Contributes to higher quality SARs by providing
investigators with data and insights to enrich reporting of
actionable intelligence to law enforcement.
- Optimizes efficiency with integrated generative AI
Entity Research copilot capabilities to reduce time spent on
manual research tasks and expedite the alert review process.
- Integrates into existing AML systems to deliver risk-scored
alerts through API or as part of Nasdaq Verafin’s intelligent
investigation solution with integrated case management
capabilities.
“As an industry, we continuously need to challenge the status
quo for how we fight financial crime and money laundering schemes –
conventional broad approaches are no longer adequate to keep ahead
of financial crime risk. Our AML approach maximizes efficiency with
compliance automation, allowing banks to redirect resources on
higher-value activities and more effectively fight financial crime
with Targeted Typology Analytics,” said Rob Norris, SVP and Head of
Product Strategy, Financial Crime Management Technology, Nasdaq
Verafin. “That is the future of AML, and this new suite of
detection capabilities represent the beginning of the next
generation of detection capabilities on our roadmap.”
Earlier this year, Nasdaq Verafin introduced new generative AI
capabilities with the launch of its integrated Entity Research
copilot to help banks optimize compliance workflows and improve
operational efficiency. With Targeted Typology Analytics, Nasdaq
Verafin further builds on its proven track record of delivering
banks’ innovative solutions to more efficiently and effectively
fight financial crime.
For more information, visit: Nasdaq Verafin's Targeted Typology
Analytics
Nasdaq Verafin, provides cloud-based Financial Crime Management
Technology solutions for Fraud Detection, AML/CFT Compliance,
High-Risk Customer Management, Sanctions Screening and Management,
and Information Sharing. More than 2,500 financial institutions
globally, representing more than $9T in collective assets, use
Nasdaq Verafin to prevent fraud and strengthen AML/CFT efforts.
Leveraging our unique consortium data approach in targeted
analytics with artificial intelligence and machine learning, Nasdaq
Verafin significantly reduces false positive alerts and delivers
context-rich insights to fight financial crime more efficiently and
effectively.
About Nasdaq: Nasdaq (Nasdaq: NDAQ) is a leading global
technology company serving corporate clients, investment managers,
banks, brokers, and exchange operators as they navigate and
interact with the global capital markets and the broader financial
system. We aspire to deliver world-leading platforms that improve
the liquidity, transparency, and integrity of the global economy.
Our diverse offering of data, analytics, software, exchange
capabilities, and client-centric services enables clients to
optimize and execute their business vision with confidence. To
learn more about the company, technology solutions, and career
opportunities, visit us on LinkedIn, on X @Nasdaq, or at
www.verafin.com
© 2024 Nasdaq, Inc. All rights reserved. Nasdaq, the Nasdaq
logo, and Verafin are registered and unregistered trademarks, or
service marks, of Nasdaq, Inc. or its subsidiaries in the U.S. and
other countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20240923679164/en/
Melanie Stead +1-709-330-8005 Melanie.Stead@nasdaq.com Financial
Crime Management Technology, Nasdaq Verafin
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