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City watchdog tells banks to uncover ‘dirty money’ with robots and AI

City watchdog tells banks to uncover ‘grimy cash’ with robots and AI

The City watchdog has instructed banks to observe down criminals with synthetic intelligence and gadget studying relatively than simply throwing money on the downside to “show willing” or seem virtuous.  

In a message that comes a day after the overseas affairs make a selection committee stated the Government “cannot afford to turn a blind eye” to criminals the usage of London to launder ill-gotten budget, the Financial Conduct Authority (FCA) stated banks will have to now not be afraid to take a look at new generation. 

“Excessive risk aversion is not going to help us win an arms race that is so heavily rooted in automation. We need to turn technology against criminals,” instructed FCA govt Megan Butler. 

She stated many banks nonetheless make use of hundreds of “checkers checking the checkers” to manually sift via high-risk transactions when clever generation may well be used to spot suspicious transactions in actual time as an alternative. 

While she admitted that there have been a lot of stumbling blocks for the trade, with some banks attempting to combine legacy IT techniques courting again to the 1970s, she stated correctly examined generation may considerably scale back companies’ publicity to dangers. 

British banks spend round £5bn a yr fighting monetary crime, one thousand million greater than the United Kingdom spends on prisons, with greater than 1.1m potential consumers final yr refused services and products due to monetary crime considerations. 

“There’s no expectation on companies to spend cash simply to ‘show willing’ or as some way of ‘distinctive feature signalling’,” she stated. “The international priority is overwhelmingly on efficacy. Not overheads.” 

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