Oracle Financial Services, a sector within Oracle, is renowned for its robust solutions in finance, risk, and compliance product development.
The company has taken a significant step to support banks in the fight against money laundering, which is expected to involve $5.05tn this year.
The cost and complexity of compliance have increasingly burdened banks amidst the escalating menace of money laundering. Oracle Financial Services has launched the Oracle Financial Services Compliance Agent, an AI-powered cloud service, to offer a practical solution to this pressing issue.
Oracle Financial Services specializes in delivering comprehensive finance, risk, and compliance solutions to the financial industry. It focuses on equipping financial institutions with advanced tools to manage financial crime and comply with regulations effectively.
The Compliance Agent empowers banks to conduct cost-effective hypothetical scenario testing. This testing allows banks to fine-tune thresholds and controls, enhancing their ability to detect and prevent illicit activities and comply with regulatory standards.
The Compliance Agent is designed to enable financial institutions to assess and optimize their Transaction Monitoring Systems (TMS) holistically and more economically. It also supports empirical decision-making in risk modeling and AML control adjustments.
The tool not only assesses the AML risk profile of new banking products but also proactively evaluates and reduces risks associated with high-risk typologies, such as human trafficking, by tuning the controls within the TMS.
Compliance Agent facilitates cheaper, faster decision-making for risk modeling by providing evidence-supported insights to compliance teams, thereby aiding in the establishment of more effective controls for transaction monitoring.
“AI and machine learning have tremendous potential to increase the effectiveness of anti-money laundering and other financial crime detection programs to deliver higher efficiencies in the transactional modeling process,” Jason Wynne, global vice president of finance, risk and compliance product development at Oracle Financial Services, highlighted the benefits of leveraging technology in compliance strategies. He emphasized that Compliance Agent would empower financial-crime compliance officers to combat money laundering more swiftly and cost-effectively.
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