Nasdaq Verafin, a provider of technology designed to combat financial crime, has announced major updates to its portfolio of artificial intelligence (AI)-based Targeted Typology Analytics.
The latest enhancements from the Nasdaq subsidiary introduce new capabilities for detecting activities related to terrorist financing and drug trafficking.
Nasdaq Verafin seeks to offer innovative solutions that help financial institutions enhance the effectiveness of their anti-money laundering (AML) and counter-terrorism financing (CFT) programmes.
This focus is essential for protecting the integrity of the global financial system in the face of widespread financial crime.
Nasdaq Verafin said that the introduction of Targeted Typology Analytics responds to a common industry challenge of the high volume of false positive alerts generated by traditional rules-based AML systems.
In the development of new analytical solutions, Nasdaq Verafin said that it leveraged its methodologies from previous analytics addressing Elder Financial Abuse and Human Trafficking.
According to the company, its analytics for human trafficking demonstrate a high level of effectiveness, with only one in four alerts resulting in a case investigation, and one in seven alerts leading to a Suspicious Activity Report being filed by financial institutions.
The newly released Targeted Typology Analytic for terrorist financing is designed to alert financial institutions to the potential funding of terrorist activities or organisations. This capability is enabled by Nasdaq Verafin’s unique consortium data, which helps identify shell companies used to facilitate the movement of illicit funds.
Following a thorough beta testing programme, this analytic is expected to be made available to its customer base of over 2,500 financial institutions later this year.
Nasdaq Verafin is also collaborating with beta customers to develop an additional Targeted Typology Analytic aimed at identifying potential drug traffickers, employing advanced link analysis to uncover drug trafficking networks.
The benefits offered by Targeted Typology Analytics include the delivery of high-quality results with fewer false positives and ability to uncover patterns of criminal behaviour by thoroughly examining a wide range of behavioural, transactional, and third-party data.
Additionally, the update provides context for activities through visual investigation tools and enhances the quality of suspicious activity reports.
The integrated generative AI Entity Research copilot capabilities further increase efficiency by minimising the time required for manual research tasks and expediting the alert review process.
Moreover, Nasdaq Verafin’s Targeted Typology Analytics can seamlessly integrate into existing AML systems, offering risk-scored alerts through application programming interfaces (APIs).
Nasdaq Verafin financial crime management technology executive vice president and head Stephanie Champion said: “We are committed to delivering innovative solutions to help banks more efficiently and effectively fight evolving financial crime threats, while navigating an increasingly complex regulatory environment.
“Our approach provides a step change towards disrupting some of the most nefarious crimes that have deep economic and societal impacts and are severely impacting the financial industry.”
The company also introduced generative AI capabilities through its integrated Entity Research copilot earlier this year, aimed at assisting banks in optimising compliance workflows and improving operational efficiency.
