Wednesday, July 17, 2024

Chances for Using Gen AI for KYC and Anti Money Laundering

Maintaining compliance with local, state, federal, and international laws is an expensive burden for financial institutions; to meet regulators’ stringent standards, the banking sector has to spend more than $200 billion.

Anti Money Laundering

Strise has developed an Anti Money Laundering (AML) Intelligence System that is trusted by some of the biggest financial institutions in the Nordic region as well as rapidly expanding fintechs, with the goal of making this process simpler and less onerous. Their AI-powered technology turns Anti Money Laundering (AML) from a resource-guzzling endeavor into a successful tactic that gives compliance teams the means to tackle financial crime.

How are Google Cloud going to do that? Well, just a small number of the millions of events that occur every day are pertinent to a business or individual. At Strise, Google leverage of AI-powered platform in conjunction with the most recent advancements in Natural Language Processing (NLP) research to sift through the noise and pinpoint the most significant events for it consumers.

Opportunities for KYC and AML Using Gen AI


Gen AI has great potential to improve KYC and Anti Money Laundering (AML) processes. AI’s speed, efficiency, and precision will assist financial institutions comply with laborious, expensive, and error-prone manual KYC and AML processes.

Automating KYC and Anti Money Laundering (AML) procedures is optimized by combining the power of Gen AI with multi-billion parameter large learning models (LLMs). These models’ extra power makes data collecting, validation, and risk assessment more effective. This could possibly save billions of dollars that are now spent on human checks, improve customer experience, speed up the onboarding of new customers, and lower the error rate.

Crucially for Anti Money Laundering applications, LLMs can also greatly increase the accuracy and dependability of data processing processes. These technologies improve the capacity to perform comprehensive sentiment analysis from textual data, allowing for the more precise processing of large amounts of data.

All of this opens up more options for processing information linked to an individual or business that might indicate money laundering activity. Businesses will be better protected against financial fraud and assure regulatory compliance, sparing institutions from hefty fines and harm to their reputation, by being able to make connections between seemingly unrelated bits of data.

Google rationale for selecting Vertex AI

Since the beginning, They have fully committed to Google Cloud and have relied on a wide range of Google services across the stack. Each market has specific requirements for data localization, encryption, and security, in addition to adhering to EU legislation, because it is a member of a highly regulated business. Google are able to dramatically reduce the time it takes to go live with these services because of Vertex AI’s and their LLMs’ close connection with their Google Cloud-based services, as well as their IAM and Governance capabilities.

The experience with LLMs has been greatly aided by Google Cloud, which has also given us industry-specific guidance and educational resources for their teams to enable us continue customizing to the goods and services for large-scale clientele.

How is Gen AI used?

Encouraging seamless user experiences

Their goal at Strise is to provide a product that is both understated and sophisticated. People are drawn to software that is both aesthetically pleasing and simple to use by nature. They haven’t yet seen anyone who values a complicated user experience above a straightforward one.

KYC can be intricate, with intricate procedures spread across several systems, which makes creating a straightforward interface difficult. When faced with these obstacles, it dedication to upholding the strictest regulatory standards takes precedence, even at the moment of momentary compromise with their commitment to user-friendliness.

Imagine a world in which you didn’t have to go through several menus and options to communicate what you wanted. That would create a seamless user experience in place of those incalculable seconds and minutes, drastically changing the way Google engage with technology.

Google Cloud are about to enter this new reality, in my opinion. Strise is working on an LLM-based AI co-pilot that will assist you in achieving your objectives while utilising the present features of their app. The co-pilot offers an alternate to the app’s default UI in certain sections.

For instance, Google are working on a tool that will allow banks to continuously monitor their customer portfolio. The bank’s investigator is immediately launched into a review process if an individual or organisation obtains new data, including updated financial information, sanction changes, or modifications to politically exposed person data.

The solution, while seemingly straightforward, has the ability to merge several triggers into a single one, allowing you to effectively state, “I want to set up a trigger forall high-risk enterprises with fresh sanction information and EBITDA margins.”

To select the right option in a similar manual setup, you would need to compile data from several dropdowns and scroll through the available options. If you were to provide “all high-risk companies that have received a change in sanction information and new EBITDA margin,” as an alternative, the request would be processed by the LLM and turned into a list of triggers that are supported.

Why not go farther with it? Might the entire application consist of just one prompt? Without a doubt, we’ll test reducing the number of clicks necessary and switching from click-based to prompt-based flows.

Producing code

Every day, processing massive volumes of events necessitates swiftly integrating disparate data sources. However, none of the engineers like doing the tedious task of mapping source content into a usable format. For an engineer, the steps are as follows:

  • Examining the accessible endpoints and the API specification
  • Creating a test request payload and examining the answer
  • Creating the integration and mapping logic

Google attempted to generate Scala code for new integrations that adhered to the criteria without writing a single line of code during one of Strise’s recent LLM hackathons. The prompt creates Scala code to carry out the integration utilising pre-existing libraries after accepting an example payload and response. An engineer just needs to submit a pull request after that.

Cutting down on erroneous positives

The availability of information for a particular organisation or individual is crucial to the KYC procedure. If you display information incorrectly, a consumer might not be able to do business with you. However, omitting information could result in doing business with clients you ought to avoid.

An essential part of a compliance solution is figuring out if a business or individual is sanctioned. Even though there can be more false positives with this method, compliance staff can still understand the data. They may provide Vertex AI with recognized sanction records and entity information by using LLMs. Google can obtain Palm’s assessment of whether it is a true or false positive, along with an explanation, by supplying a small dataset of sample inputs and outputs in addition to the prompt itself.

Since June 2023, Drakshi has been writing articles of Artificial Intelligence for govindhtech. She was a postgraduate in business administration. She was an enthusiast of Artificial Intelligence.


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