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Suptech applications for anti-money laundering

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FSI Papers  |  No 18  |  29 August 2019 by  Rodrigo Coelho, Marco De Simoni and Jermy Prenio PDF full text (608kb)  |  22 pages Executive Summary (83 KB, PDF) Suptech, or the use by financial authorities of data collection or advanced data analytics tools enabled by innovative technologies, seems more advanced in the field of anti-money laundering (AML) and combating the financing of terrorism (CFT). In particular, AML/CFT authorities need suptech-enabled advanced data analytics tools to analyse large volumes of information at their disposal. AML/CFT authorities are in

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FSI Papers  |  No 18  | 
29 August 2019
PDF full text
 (608kb)
 |  22 pages

Suptech, or the use by financial authorities of data collection or advanced data analytics tools enabled by innovative technologies, seems more advanced in the field of anti-money laundering (AML) and combating the financing of terrorism (CFT). In particular, AML/CFT authorities need suptech-enabled advanced data analytics tools to analyse large volumes of information at their disposal. AML/CFT authorities are in general pursuing similar advanced data analytics tools, such as network analysis, natural language processing, text mining and machine learning. These tools increase their ability to detect networks of related transactions, to identify unusual behaviours and, in general, to transform significant amounts of structured and unstructured data into useful information that contributes to their respective processes. Efficiency gains seem to be the number one benefit of advanced data analytics tools, which could help capacity-constrained AML/CFT authorities. However, the use of these innovative technologies gives rise to a number of challenges, including computational capacity constraints and data privacy and confidentiality issues. This paper aims to explore the various data analytics tools used by authorities tasked with AML/CFT responsibilities, as well as their practical experiences in using such tools.

JEL classification:  C45, G21, G38, O32

International Settlement
The Bank for International Settlements (BIS) is an international company limited by shares owned by central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks". The BIS carries out its work through subcommittees, the secretariats it hosts and through an annual general meeting of all member banks. It also provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.

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