Reported by Mirko Zorz, Director of Content, Help Net Security

Google Cloud’s AML AI represents an advancement in the fight against money laundering. By replacing outdated transaction monitoring systems and embracing AI technology, financial institutions can now stay ahead of evolving financial crime risks, improve operational efficiency, ensure regulatory compliance, and deliver a superior customer experience.

In this Help Net Security interview, Anna Knizhnik, Director, Product Management, Cloud AI, Financial Services, at Google Cloud, explains how Google Cloud’s AML AI outperforms current systems, lowers operational costs, enhances governance, and improves the customer experience by reducing false positives and minimizing compliance verification checks.

Money laundering is becoming increasingly sophisticated. How does Google Cloud’s AML AI adapt to these evolving tactics?

Most incumbent AML products are overly reliant on manually defined rules which are inefficient for identifying suspicious activities. Money launderers can learn and work around these rules to avoid detection. Even in the most advanced implementations, current rule-based systems cannot keep pace with the dynamic nature and constant adaptability of bad actors. As a result, only a fraction of suspicious activity is reported. At the same time, a high percentage of rules-based alerts are false positives, wasting valuable investigator time.

AML AI replaces legacy transaction monitoring systems with an AI-powered product that significantly improves financial crime risk detection. Google Cloud’s AML AI provides a consolidated machine learning (ML)-generated customer risk score as an alternative to rules-based transaction alerting. The risk score is based on the bank’s data including transactional patterns, network behavior, and Know Your Customer (KYC) data to identify instances and groups of high-risk retail and commercial customers. The product can adapt to changes in underlying data, delivering ongoing and accurate results which increases overall program effectiveness and improves operational efficiency. 

Why did Google Cloud decide to build a solution for AML now?

Our goal has always been to make Google Cloud the platform of choice for the financial services industry. We bring innovations that combine the best of Google Cloud technologies, data, infrastructure and AI and ML to organizations across the financial ecosystem to help solve their biggest challenges. Our AML AI product builds on this commitment, as we are already seeing the value that AI-powered technology can provide banks to manage risk and fraud, and improve operational efficiencies.

Read full report: https://www.helpnetsecurity.com/2023/07/12/anna-knizhnik-google-cloud-aml-ai/