Роман Терещенко, бізнес-аналітик

Roman Tereshchenko: combating fraud and money laundering – global trends

In 2024, deep integration and increased funding in the field of artificial intelligence (AI) will be a key focus of counter-illegal financial transaction strategies. Financial technology expert Roman Tereshchenko says that the use of AI promises to speed up investigation processes, automate the creation of case reviews, and immediately generate reports on suspicious transactions. According to specialist forecasts this year, generative AI is expected to find its way into all aspects of financial crime prevention efforts, from customer verification (KYC) to anti-money laundering, fraud detection, and sanctions list management.

Challenges, opportunities, and regulation in the fight against financial crime

According to expert forecasts, the number of digital banking users is expected to reach 3.6 billion this year. That is, the volume of transactions is growing rapidly. Payments flow between personal and corporate accounts, and their methods are also changing – mobile banking applications, cardless options, digital wallets, and others. All this violates established standards. Therefore, in 2024, national regulators continue to develop stricter approaches to AI legislation, as well as laws related to AML/CFT and payment systems.

For example, in the UK, according to information from Roman Tereshchenko, the provisions of the Law on Economic Crime and Corporate Transparency came into force. They address issues of money laundering and fraud. In the European Union, the PSD3 proposal and the Payment Services Regulation are expected to be adopted, which will impact the financial environment. According to the analyst, the EU AI Law is also being updated, which will prescribe enhanced security and privacy measures in real-time.

Taking into account the breakthrough in technology and financial legislation on the use of AI, the expert proposes to dwell in more detail on important innovative projects and global trends of our time, which are creating a revolution in the fight against financial fraud and money laundering.

Vertical language models as a progressive step in the fight against financial crimes – 2024 – Roman Tereshchenko

Global real-time transaction volume has grown 63.2% over the past two years. Accordingly, this rise has led to an expansion of the arsenal of new financial and payment technologies, the analyst emphasizes. Therefore, real-time monitoring is becoming increasingly important to detect potential fraud. In 2024, large language model (LLM) verticalization technology will enter the fight against illegal financial crimes.

– LLM improves the way we monitor, use, and process incoming and outgoing AI data, especially at the financial enterprise level. Examples of such progress are already in the fight against money laundering and fraud prevention, which are successfully using this technology and benefiting from it.– comments Roman Tereshchenko.

At the same time, according to the expert, LLM changes the rules of the game in the financial environment:

  1. Makes it possible to conduct online analysis faster – by specifying the desired algorithm of actions for the chatbot. This leads to immediate results while increasing productivity and efficiency.
  2. This leads to improved results and savings by optimizing time spent.
  3. Using industry-specific LLM AI programs ensures consistency in case summaries and suspicious activity reports, which improves their quality.
  4. Data analytics becomes more accurate and feedback becomes faster for companies that use such software.

That is, efficiency and accuracy are two main aspects of LLM that help combat online financial crime. What other modern practices underlie the fight against fraud and money laundering?

Personal data verification: trends and anti-fraud – Roman Tereshchenko

The expert believes that modern methods of protection against financial crimes should be based on effective tools for identifying individuals and sources of financial flows. Roman Tereshchenko draws attention to the following areas that are important for fintech companies to develop:

  • Biometric technologies. The introduction of fingerprints and facial recognition increases the security and accuracy of personal data verification, making authentication methods more effective.
  • AI in verification. Using AI to analyze patterns and detect anomalies provides dynamic fraud protection.
  • Blockchain for secure verification. Blockchain technology is being actively researched as a tool for safe and secure identity verification. Due to its decentralized nature, it is capable of increasing the privacy and security of users’ information.

To summarize, the expert says that anti-financial crime trends in 2024 attract attention for their drama and certain predictability. But what is important to understand here is that with the right strategies, innovation, and the use of advanced technology, the threats of fraud, money laundering, and other illegal interference in a company’s operations can be overcome. It is important to evaluate these trends in the context of your organization and take appropriate action.