Mulai’s Post

It’s always fascinating to see how bad actors are leveraging AI in new and evolving ways to commit crimes. Some recent examples from: ·      Reuters - AI generated phishing campaigns https://lnkd.in/es8ix8eC ·      Sumsub - Synthetic identities created using genAI https://lnkd.in/emqq76hh ·      American Bar Association - Deepfake AI audios https://lnkd.in/eWdNK3Ek Against that backdrop, I found it interesting that Fenergo's report last week (https://lnkd.in/e_cj-c_v) highlights that financial institutions are also doubling down on AI to fight financial crime with 92% of SG financial institutions now using AI in their AML/KYC systems, the highest adoption rate globally 👍 So what does this tell us? AI is no longer optional; it’s becoming the baseline on both sides. The next differentiator won’t be whether AI is used or not, but how it can be used intelligently and responsibly. #AI #FinancialCrime #Compliance #Innovation #Singapore #AML #KYC

The Hidden World Behind “Verify Your Identity” Ever clicked “Verify your identity” and moved on without realizing the depth of intelligence behind that simple step? That’s the world of KYC (Know Your Customer) and AML (Anti-Money Laundering), two pillars quietly holding up the integrity of the global financial system. Every ID check, document scan, or transaction review triggers a cascade of data-driven checks, pattern analyses, and behavioral scoring models that determine whether a customer or transaction is legitimate or high-risk. - KYC ensures we know who our customers are by verifying identity, background, and intent. - AML ensures we understand how they move money by detecting suspicious activity that could indicate fraud, terrorism financing, or money laundering. In today’s financial landscape, compliance can’t be reactive anymore; it has to be predictive and intelligent. That’s where data analytics, automation, and machine learning come in, transforming compliance from a manual, rule-based task into a proactive risk detection ecosystem. By integrating real-time data pipelines, anomaly detection algorithms, and entity resolution techniques, institutions can uncover hidden relationships, track complex patterns, and mitigate risk faster than ever before. At its core, AML/KYC isn’t just about regulation; it’s about trust, transparency, and resilience in financial systems. It’s proof that when data and compliance work together, the result is not just safer transactions but a safer economy. #AML #KYC #DataAnalytics #FinancialCrime #RiskManagement #FinTech #Compliance #RegTech #MachineLearning #DataDrivenDecisions

Omniguard by Autogon AI -powered transaction monitoring is revolutionizing how financial institutions protect themselves and their customers. Here’s why proactive transaction monitoring is critical: 1. Unmatched Speed and Accuracy: Omniguard can analyze millions of transactions in real-time, detecting patterns and anomalies in milliseconds. 2. Adapting to Sophisticated Threats: Fraudsters constantly innovate, using tactics like synthetic identities or micro-transactions to evade detection. We got you here! Fear less. 3. Reducing False Positives: Our system refines its understanding of customer behavior, minimizing false positives and improving user experience while maintaining security. 4. Regulatory Compliance: With stricter regulations like AML and KYC, we ensure compliance by continuously monitoring transactions for suspicious activity, generating audit-ready reports, and reducing the risk of hefty fines. Without robust monitoring, financial institutions risk significant losses—$3.7 trillion annually, per industry estimates—along with reputational damage and regulatory penalties. Proactive monitoring safeguards customer trust, ensures compliance, and protects the bottom line. #AIFraudDetection #TransactionMonitoring #FinancialSecurity

🚨 𝗙𝗿𝗮𝘂𝗱 𝗶𝘀 𝘁𝗵𝗲 𝘀𝗶𝗹𝗲𝗻𝘁 𝘁𝗮𝘅 𝗼𝗻 𝗰𝗿𝗼𝘀𝘀-𝗯𝗼𝗿𝗱𝗲𝗿 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀. Mule accounts. Synthetic IDs. FX manipulation. Legacy fraud engines alone can’t keep up. That’s where 𝗚𝗲𝗻 𝗔𝗜 + 𝗔𝗴𝗲𝗻𝘁𝗶𝗰 𝗔𝗜 change the game: ✅ Parse unstructured KYC + payment notes for hidden red flags ✅ Correlate near-duplicate identities across millions of records ✅ Explain fraud risk in plain English for compliance ✅ Auto-adapt rules + open tickets with full audit trails 💡 The result? 𝗙𝗲𝘄𝗲𝗿 𝗳𝗮𝗹𝘀𝗲 𝗽𝗼𝘀𝗶𝘁𝗶𝘃𝗲𝘀, 𝗳𝗮𝘀𝘁𝗲𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀, 𝗮𝗻𝗱 𝘀𝘁𝗿𝗼𝗻𝗴𝗲𝗿 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗮𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁. I just published an article diving into this: 𝗙𝗶𝗴𝗵𝘁𝗶𝗻𝗴 𝗙𝗿𝗮𝘂𝗱 𝗶𝗻 𝗖𝗿𝗼𝘀𝘀-𝗕𝗼𝗿𝗱𝗲𝗿 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝘄𝗶𝘁𝗵 𝗚𝗲𝗻 𝗔𝗜 + 𝗔𝗴𝗲𝗻𝘁𝗶𝗰 𝗔𝗜. ++++++++++++++++++++++++++++++++++++++ 👉 If you’re in fintech, remittance, or payments and want AI-powered fraud detection, let’s connect. #FraudDetection #Fintech #CrossBorderPayments #GenerativeAI #AgenticAI #AML #RegTech

The AML/CFT Evolution: Moving from Compliance to Proactive Defense 🛡️ Did you know that illicit funds are estimated to represent 2-5% of global GDP? That staggering figure—ranging from $800 billion to $2 trillion—underscores why Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) are not just regulatory checks, but essential pillars of financial system integrity and global security. The compliance landscape is undergoing a massive shift: 1. The Tech-Powered Frontier: Traditional rule-based systems are struggling to keep up with sophisticated criminals leveraging digital assets and "Crime-as-a-Service" networks. Today, the battle is won with AI and Machine Learning. These technologies are critical for enhancing transaction monitoring, reducing false positives, and moving from reactive investigations to predictive risk detection. 2. Regulatory Expansion: Regulators globally are tightening the net. From the USA's Corporate Transparency Act (CTA) driving Beneficial Ownership transparency to the proposed expansion of BSA/AML requirements to sectors like investment advisers, the complexity is only increasing. Staying ahead means adopting a truly risk-based and highly agile approach. 3. The Talent Imperative: The biggest challenge for many firms isn't just the technology—it’s the capacity and capability of the team. We need compliance professionals who are not only regulatory experts but are also proficient in data analytics, AI model governance, and the nuances of digital asset forensics. AML/CFT professionals are on the front lines, protecting economic stability and actively disrupting the funding channels for organized crime and terror. It’s challenging, but profoundly impactful work. Question for the Compliance Community: What is the single biggest technological or regulatory challenge your institution is facing in the AML/CFT space right now? Share your insights below! 👇 #AML #CFT #FinancialCrime #Compliance #RegTech #AIinFinance #AntiMoneyLaundering

𝗧𝗵𝗲 𝗦𝗲𝗰𝗿𝗲𝘁 𝗕𝗮𝘁𝘁𝗹𝗲: 𝗛𝗼𝘄 𝗔𝗜 𝗶𝘀 𝗙𝗶𝗴𝗵𝘁𝗶𝗻𝗴 𝗕𝗮𝗰𝗸 𝗔𝗴𝗮𝗶𝗻𝘀𝘁 𝗙𝗶𝗻𝘁𝗲𝗰𝗵 𝗙𝗿𝗮𝘂𝗱 Despite all the innovation, fintech operations remain surprisingly manual-heavy. The reason is simple: When money is involved, banks implement layers of human oversight at every step. Major US banks already have automated systems for credit approvals and risk management, but they're facing an unexpected challenge. When you go for a loan and submit 10+ documents - financial statements, KYC papers, and bank references, companies add balance sheets, tax records, and compliance certificates. Teams of reviewers manually examine each document, but here's the catch - they're only scanning for basic data points, not analyzing the full content. This creates bottlenecks and missed opportunities for deeper insights. AI is revolutionizing this workflow by automatically extracting data from any document format, cross-referencing information through government APIs, and conducting real-time validations. What once took days of manual review now happens in minutes with greater accuracy. But here's where it gets complicated: as banks automated legitimate processes, fraudsters automated their attacks. We're now seeing manipulated documents that pass initial screening and deepfake KYC videos so realistic they fool human reviewers. The answer? Banks are deploying AI systems specifically designed to catch AI-generated fraud. It has become a technological chess match, where both sides continually upgrade their capabilities. To stay ahead in this intelligence arms race, explore CAI Stack’s fraud prevention in the comments below! #Fintech #AITransformation #FraudPrevention #Banking #CAIStack

The real reason fintechs lose trust isn’t speed. It’s letting controls fall behind as the business grows. If your customer numbers double but your risk controls stay the same, you’re setting yourself up for trouble. You’ll find out fastwith more fraud, more chargebacks, and new attention from regulators. So, what does it take to build risk controls that actually keep up? 𝗛𝗲𝗿𝗲’𝘀 𝗮 𝘀𝘁𝗿𝗮𝗶𝗴𝗵𝘁𝗳𝗼𝗿𝘄𝗮𝗿𝗱 “𝗙𝗶𝗻𝘁𝗲𝗰𝗵 𝗖𝗼𝗻𝘁𝗿𝗼𝗹 𝗦𝘁𝗮𝗰𝗸” 𝗜 𝗿𝗲𝗹𝘆 𝗼𝗻: Onboarding that matches risk Start with flexible KYC. Use tiered due diligence so you don’t treat every customer the same. Flag things like PEPs or high-risk countries, and look at device and IP patterns from day one. Transaction monitoring that learns Use both simple rules (think: alerts for unusual behavior) and machine learning. Check your system every day. And make sure each alert flows smoothly into a case, and when needed, a SAR. Data privacy isn’t an afterthought Collect only what you really need. Know why you gather each data point, and have rules for how long you keep it. Block requests for extra data just because “it might be useful later.” Check your vendors for real Don’t just take a third party’s word for it. Dig into their processes, not just their pitch. Test their controls yourself especially if they handle customer IDs or payments. Test your own system hard Run through “what if” scenarios that could break your defenses. Make sure your sanctions filters still catch the right things. Check for drift in your models, not just once a year. If you had to bet, which area would stretch first at your company onboarding, monitoring, privacy, vendors, or testing? #Fintech #AML #KYC #FraudPrevention #DataPrivacy #ThirdPartyRisk #ComplianceByDesign #FinancialServices #EthixeraConsulting

We’ve interviewed Roy Prayikulam, SVP Risk and Fraud Division at INFORM GmbH - Optimization Software, to shed light on how AI can best be employed in the fight against instant payment fraud. ➡️ https://lnkd.in/ectAtUSX Roy addresses the following pressing questions: ❔ With the proliferation of Open Banking and Pay by Bank solutions, how has #fraud evolved in the instant payments space? ❔ Which fraud types are most prevalent in instant payments, and how can businesses best address these threats? ❔ How is industry #regulation trying to mitigate the risk of A2A payments, and which factors should companies prioritise to ensure compliance and effective safeguards? ❔ How can hybrid AI help prevent fraud in A2A payments, and which approaches have proven most successful? ❔ What are your expectations for the evolution of the instant payment industry, and how does INFORM support financial institutions in securing A2A payments at scale? 💡 ‘Companies should go beyond basic #compliance and prioritise proactive measures like real-time risk analysis, transparent AI-based decisions, clear incident processes, or strong customer education. In A2A payments, protecting the end-user experience – the ‘last mile’ – is especially critical.’ Delve into the full interview on The Paypers! ➡️  https://lnkd.in/ectAtUSX #OpenBanking #instantpayments #A2Apayments #AI #fraudprevention #APPfraud #SCA #phishing #dataprotection #financialfraud #hybridAI #RequesttoPay #embeddedpayments #ThePaypers

After three months as VP of Product at Encompass, Terry Dawson reflects on the complexity of KYC, the opportunities it presents, and how Corporate Digital Identity (CDI) and perpetual KYC (pKYC) are poised to transform compliance. From cutting duplication to strengthening data foundations, Terry shares why scale, resilience, and adoption are key to building solutions that compliance teams actually want to use. He also highlights how AI is being applied, not to replace people, but to amplify expertise and reduce repetitive work. Curious how CDI and AI are shaping the next chapter of financial crime prevention? Read the full story here .... https://bit.ly/42yBkVt #KYC #AML #CorporateDigitalIdentity #pKYC #AIinBanking #FinTech #FinancialCrime #ComplianceInnovation

⚠️Manual AML checks can’t keep up with criminals anymore. Enter RegTech – the new frontline defense against financial crime. What is RegTech?🖥️🛜 Regulatory Technology = AI + Data + Automation working together to crush compliance challenges. No more drowning in spreadsheets. No more chasing false positives. How RegTech is transforming AML: ✅ Real-time monitoring – AI flags suspicious transactions instantly. ✅ Smarter risk scoring – Cuts down 70–80% false positives. ✅ Faster KYC/Onboarding – Digital ID checks & sanction screening in minutes. ✅ Effortless reporting – One-click, regulator-ready reports. 📌 Imagine this: A global bank was wasting thousands of hours reviewing false alerts. After adopting a RegTech tool with machine learning, their productivity jumped 3X. Investigators now focus only on real threats, not noise. Why it matters: Criminals innovate daily, If compliance teams stay stuck in manual mode → we lose. With RegTech, compliance professionals get superpowers— sharper insights, faster action, and stronger defenses.. #AML #KYC #RegTech #Compliance #FinancialCrime #TransactionMonitoring #RiskManagement #Sanctions #AI #MachineLearning #FraudPrevention #AntiMoneyLaundering #CDD #EDD #PEP #AdverseMedia #FinCrime #RegulatoryCompliance #Banking #FinTech #FraudDetection #Governance #Technology #Audit #FinancialServices