Verafin Offers Innovative Solutions for BSA/AML Compliance and Financial Crime Management
Strategic Link partner develops a platform that features smart evidence and risk-rated fraud and BSA/AML alerts.
Strategic Link business partner, Verafin, has been on the cutting edge of financial crime management for credit unions since 2003. Today, the company utilizes the latest advances in artificial intelligence and machine learning, including Robotic Process Automation (RPA), to address Bank Secrecy Act/Anti-Money Laundering compliance and offer fraud detection systems that improve efficiency and effectiveness.
Encouraged by peer adoption and industry recommendations, credit unions are deploying AI solutions for financial crime management. With the right technology in place, credit unions can benefit from improved detection capabilities, customer onboarding experiences, reduction in false positive alerts, and overall savings in operational expenses. Additionally, in 2017, Aite reported that 68% of financial institutions were prioritizing investment in machine learning development specifically for banking fraud analytics.
“When considering technology options, it’s important to evaluate solution providers that specialize in big data intelligence with proven data and domain expertise,” said Strategic Resources Vice President, Jason Smith. “Verafin has been on top of the industry as they’ve developed innovative solutions, including machine learning and RPA, specifically to benefit compliance and financial crime mitigation programs.”
Industry regulatory agencies have reacted to the early success of these innovative solutions to improve the effectiveness of BSA/AML programs. In 2018, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network (FinCEN), the National Credit Union Administration, and the Office of the Comptroller of the Currency issued a joint statement encouraging the use of new technology for BSA/AML regulatory compliance.
The statement read, “These innovations and technologies can strengthen BSA/AML compliance approaches, as well as enhance transaction monitoring systems. The Agencies welcome these types of innovative approaches to further efforts to protect the financial system against illicit financial activity. In addition, these types of innovative approaches can maximize utilization of banks’ BSA/AML compliance resources.”
To support credit unions’ efforts in meeting compliance and controlling fraud, Verafin’s Financial Crime Management platform features smart evidence and risk-rated fraud and BSA/AML alerts that removes the traditional silo approach between BSA/AML and fraud departments, allowing institutions to work more efficiently. The company’s Information Sharing capabilities allow credit unions to conduct collaborative investigations with other institutions, which saves time and resources.
Smith believes that credit unions can benefit from evaluating AI approaches to assess their financial crime management systems, policies, and processes.
With assurances from regulatory agencies and early adopters, credit unions can assess how these technological advances can benefit their organizations and help them keep pace with constantly-changing industry demands.