AI Monitoring Money Laundering

Artificial intelligence has opened new opportunities for companies across all market segments, and the financial sector is no exception. Today, financial service providers are making efficient use of AI monitoring solutions to monitor the transaction, detect fraud, enhance decision-making, and improve customer service. Besides, we may have already heard about big data and artificial intelligence applications in preventing cyber threats. Additionally, artificial intelligence can address money laundering matters confronted by financial service providers.

We all know that money laundering remains to be a significant concern in the financial sector. Consequently, companies in the financial sector are struggling to combat the growing concern of money laundering. It is where AI in money laundering can aid financial companies.

 Ways AI can Address the Growing Threat of Money Laundering

 #1: Anti-Money Laundering

AI in money laundering enables financial services companies to keep track of all individual transactions. These transactions involve cash deposits, withdrawal, transfer, and much more. AI monitoring solutions have five core capabilities – auto feature engineering, intelligent segmentation, behavioral insights, intelligent event triage, and contextual alert information. These features of AI monitoring solutions enable organizations to determine specific benchmark patterns based on transaction history and real-time customer behavior. Also, financial companies can track daily changes in customer behavior and identify threats before they occur.

AI monitoring solutions or applications also can monitor the third-party involved in the transaction. The third-party data can be used to determine whether a transaction is legitimate or not. In this way, AI in money laundering enables financial companies to detect fraud before it happens. Additionally, many AI monitoring solutions and applications can instantly generate financial reports, reduce staff costs, and minimize compliance risks.

#2: Anti-Fraud

The things customers used to purchase at shops are now bought online. Therefore, payment fraud has become a significant concern for financial companies. This is where AI in money laundering solutions comes to the rescue. AI monitoring solutions aim to tackle payment fraud issues faced by financial institutions. This involves fraud across automated teller machines or ATMs, point of sales, mobile, and other modes.

AI in money laundering enables financial service providers to identify fraud events, recognize complicated patterns, and determine transactions’ legitimacy. As the online payment is on the rise, the banking and financial sectors will continue to witness payment fraud. Email phishing, document forgery, fake accounts, identity thefts, and payment fraud are common financial frauds. Therefore, businesses must efficiently use AI monitoring solutions to tackle these challenges and ensure secure transactions.

#3: Transaction Filtering

As the volume of transactions rises, financial companies are compelled to carry a screening process to investigate if any customer is involved in financing crimes. This is where AI in money laundering can help. AI monitoring solutions can be leveraged to reduce false positives and improve the quality of the alerts.

AI monitoring solutions also help financial service providers in transaction filtering. This eventually enables companies to screen high-risk organizations. AI monitoring solutions or applications have adequate filters to detect and prevent unauthorized money from entering the banking system. Transaction filtering can also block transactions that contain suspicious data, blacklisted countries and cities, and much more.

Therefore, AI in money laundering helps financial service companies to:

  • Ensure global compliance consistency by screening transactions against watch-lists
  • Block unauthorized transactions in real-time
  • Reduce compliance costs
  • Speed up investigations and reporting

#4: Event Scoring

You may have already heard about event scoring. Event scoring applications make use of artificial intelligence to handle and prioritize financial crime alerts. It allows financial analysts to focus on priority tasks instead of responding to every single alert.

AI in money laundering also allows enterprises to monitor transactions against robust data sets quickly. Additionally, AI monitoring solutions enable organizations to detect money laundering and other financial crimes as they happen and forecast potential frauds. As a result, financial institutions can remain compliant with regulators, reduce reputational risk, and keep customer trust. 


Money laundering is still a primary concern of financial service providers. Therefore, companies in the financial sector must thoroughly analyze money going to and from a client’s account. However, this task is impossible to do manually. So, financial companies will need to invest in AI monitoring solutions to address money laundering challenges.

AI monitoring solutions can help companies in analyzing consumers’ real-time data and historical information. Additionally, AI in money laundering is used to prevent fraud, block unauthorized transactions, speed reporting, and prevent suspicious activities.

Leverage AI monitoring solutions to block unauthorized transactions in real-time, speed up investigations and reporting, screen high-risk organizations, and reduce false positives. Moreover, stay away from email phishing, document forgery, fake accounts, identity thefts, and payment fraud with AI in money laundering.