Google Cloud has announced a tool called Anti Money Laundering AI. Based on artificial intelligence, financial institutions should be able to detect money laundering more easily. It is not known what customers would have to pay for the AI package.
Google’s model, abbreviated to AML AI, uses various data sources to arrive at a risk score, so states the company. Transaction patterns, online activity and know your customer data, among other things, contribute to the risk score of the artificial intelligence. Instead of the usual alarm bells that go off with specific predetermined patterns, the AI tool must determine a risk score in a more dynamic and nuanced way.
Based on the detection capabilities of AML AI, customers, which in this case are large financial companies and banks would be, take action against alleged perpetrators. British bank HSBC would be the first to use Google’s AI cloud technology. The number of correct positive reports of money laundering at the bank would have increased by two to four times compared to before, when traditional anti-money laundering measures were still used based on predetermined parameters. The total number of reports would have fallen by more than sixty percent, which indicates a significant decrease in false positive notifications.
According to the United Nations between USD 800 billion and USD 2 trillion in money laundering worldwide every year. That is between two and five percent of the world’s gross national product.
