Google Cloud made an important announcement on June 21, 2023. They have introduced a new product called Anti Money Laundering AI (AML AI). This product utilizes artificial intelligence (AI) to assist global financial institutions in detecting money laundering more effectively and efficiently.
Money laundering is a complex issue that has a significant impact worldwide. It is estimated that a substantial amount of money is involved in money laundering activities.
The amount is approximately 2-5% of the global GDP, which could be as high as $800 billion – $2 trillion in current US dollars, according to the UN’s Office on Drugs and Crime.
These illicit funds are often linked to illegal practices such as drug and human trafficking, as well as the financing of terrorism.
How does Google’s ‘Anti Money Laundering AI’ work?
Google Cloud’s AML AI offers a simplified and more efficient approach to detecting suspicious transactions. Instead of relying on rigid rules, it uses advanced machine learning (ML) techniques to generate a customer risk score.
This score is derived from a comprehensive analysis of various data sources, such as transaction patterns, network activities, and customer information obtained through Know Your Customer (KYC) processes, according to Google Cloud’s blog.
By considering these factors, AML AI can effectively identify individuals and groups of customers who pose a high risk of being involved in illegal activities. The product has the ability to adapt and adjust its analysis as new data becomes available.
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Thomas Kurian, the CEO of Google Cloud, expressed the company’s commitment to utilizing their expertise and technologies to address a significant challenge faced by the financial services industry.
As a leader in the field of artificial intelligence (AI), Google is now extending its capabilities to tackle one of the most substantial and expensive issues in this sector, Kurian further explained.
Google Cloud’s AML AI improved HSBC’s AML detection capability
By leveraging the power of Google Cloud’s AML AI, HSBC has witnessed a remarkable improvement in its ability to detect potential money laundering activities.
The advanced capabilities of AI technology have enabled HSBC to achieve more accurate results, enhancing the effectiveness of its transaction monitoring process.
Furthermore, the adoption of Google Cloud’s AML AI has significantly reduced the time required for processing large batches of customer data.
The successful implementation of Google Cloud’s AML AI and the resulting improvements in HSBC’s anti-money laundering efforts have been recognized and acknowledged by industry experts.
As a testament to their achievements, HSBC was honored with the Celent Model Risk Manager of the Year 2023 award.