Modern Compliance Begins with Smarter Financial Crime Detection

Financial crimes involve activities executed by individuals or organizations that relate to theft of money through illicit means. Financial crimes threaten organizations in a variety of industries, including financial institutions. These crimes vary in scope and sophistication and can be carried out by individuals for personal gain or by well-organized criminal enterprises.

While financial crimes encompass a variety of illicit affairs, two common examples are fraud and money laundering. Money laundering is a financial crime that involves the conversion of profit from unlawful activity into money that appears to be the product of normal business. Financial fraud is an umbrella term that describes any activity that deprives another person of money or other assets through deception or crime. Fraud can be executed in a variety of ways, including check fraud, identity theft or phishing, and involves accessing a victim’s assets through unauthorized means.

In today’s digital era, leveraging technology that allows your organization to access a holistic customer risk profile by analyzing a vast amount of data, transactions and consumer behaviors helps prevent financial crimes like fraud and money laundering.

Platforms like TruDetect and TruProtect that are powered by data science, which includes AI and machine learning, help organizations more quickly and easily discover new patterns and trends—and proactively intervene to stop losses before they occur. These next-generation fraud and AML solutions that use AI models to continuously adapt to changing techniques empower institutions to better predict and prevent financial crimes.

Regulated businesses—including banks, credit unions, money services businesses and other organizations—are required to meet various federal regulations that mandate how customers are treated, who they do business with and more. These organizations must manage politically exposed persons (PEP) and adverse media screening and ensure compliance with current federal regulations, including USA PATRIOT Act, Gramm-Leach-Bliley Act and BSA/AML.

If regulated organizations fail to comply with relevant regulations, they can face civil and criminal penalties, leading to costly fines.