NICE Actimize Blog

Fighting Financial Crime

A global challenge: Fast Payments equals Faster Fraud

Real-time, instant, or simply faster payments are ubiquitous across the globe, in the 16 years since the U.K. roll out. In fact, many countries, such as the U.S., have multiple real-time payment platforms with RTP, FedNow and Zelle. We also see a variety of payment limits (not always the end consumer facing limits) with £1m in the U.K., $1m in U.S. and EUR100k in the EU.

AI Surveillance Trends:
Three Experts Weigh in on Why AI’s Essential and What’s Coming Next

According to recent survey by Ernst & Young, AI adoption among financial services firms has become widespread with 99 percent of firms saying that they are already deploying AI, and all citing that they are either already using or planning to use generative AI (GenAI). The majority of respondents felt optimistic about the benefits GenAI would bring to their organizations, with long-term sentiment registering even stronger. While the Ernst & Young survey covered broad uses of AI across financial services organizations, a separate Chartis Research Survey (The Future of Trader Surveillance) revealed that financial services firms are also prioritizing AI to improve trade surveillance, with half of firms surveyed listing AI as a key technology driver. Another NICE Actimize survey revealed that 25 percent of respondents were actively using Natural Language Processing (a form of AI) for communications surveillance. With these trends in mind, we asked three AI and regulatory subject matter experts to weigh in on how they expect “AI will improve surveillance for financial services firms in 2024 and beyond.” Here’s what they had to say:

Driving Financial Crime Innovation with Generative AI Under the EU’s AI Act

In an era where the advancement of technology intersects with the imperative of regulatory compliance, financial institutions (FIs) are confronted with a pivotal question: How can they harness the progressive power of Generative AI (GenAI) to drive innovation, enhance operational efficiency, and deliver unparalleled customer experiences, while navigating the complexities of model governance, regulation, and compliance? This question becomes even more pressing in the light of the European Union’s AI Act, a groundbreaking piece of legislation designed to steer the development and application of AI within a framework that ensures safety, transparency, and the protection of individual rights.

What’s Perpetual KYC and How Can I Implement pKYC Successfully?

Perpetual KYC (pKYC), also known as event-driven KYC, is seen by many as the solution to ensuring continuous compliance and risk management when it comes to Know Your Customer (KYC) and Know Your Business (KYB) processes. But what’s pKYC, what does it look like in practice, and what does it take to implement it successfully?

Next Generation Enterprise Information Archiving:
How Can Your Firm Benefit?

The explosion in new communication modalities and collaboration tools, along with evolving regulations, are making regulatory record-keeping and compliance more complex and challenging by the day. In this interview, NICE Actimize Product Manager Rajeev Hegde weighs in on the challenges financial services firms are facing with respect to archiving growing volumes and types of communications data, and new solutions and approaches that can reduce compliance costs, complexities, and risks.

Network Analytics in Financial Crime and Compliance

Network analytics is a crucial tool when it comes to combating fast-evolving financial crimes. It reveals connections to suspicious activities, significantly improving investigations. Traditionally, network analytics in financial institutions (FIs) were siloed from main investigation platforms, requiring manual efforts from investigators. However, advancements in AI, analytics, and graph database technology have transformed its role, allowing for automated analysis and more effective risk uncovering.

SEPA Instant Payments – How will mandating real-time payments and the new Payment Service Regulation change the fraud landscape for European FIs?

SEPA is the Single Euro Payments Area, covering Euro denominated payments for 36 countries in Europe. Whilst most European countries have had access to SEPA Instant Credit Transfers (SCT Inst) since November 2017, they have not been widely adopted as quickly as had been hoped. This is about to change thanks to a new mandate from the European Commission (EC).

Outpace First-Party Fraud and Mule Activity

First-party fraud is when the fraudster doubles as a customer. Fraudsters will open accounts for the specific purpose of executing their fraud schemes. One common example these days are money mules who open accounts for fraudsters, enabling them to transfer money through multiple banks and countries to avoid scrutiny. In this blog, we cover how to stop losses to first-party and money mule fraud, along with how to move away from a narrow definition of third-party fraud loss on the profit and loss account (P&L) to a wider definition as per the U.S. Federal Reserve’s Fraud Classifier.

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