AI Driven Anti Money Laundering Compliance Monitoring Workflow

Anti-Money Laundering (AML) Compliance Monitoring

1. Data Collection

1.1 Identify Data Sources

Gather data from various sources including:

• Transaction records
• Customer identification documents
• Third-party data providers

1.2 Implement AI-Driven Data Extraction Tools

Utilize tools such as:

• Alteryx: For data blending and advanced analytics.
• IBM Watson: For natural language processing to extract information from unstructured data.

2. Data Preprocessing

2.1 Data Cleaning

Ensure data accuracy by removing duplicates and correcting errors.

2.2 Data Normalization

Standardize data formats for consistency across datasets.

3. Risk Assessment

3.1 Customer Risk Profiling

Utilize AI algorithms to assess customer risk based on:

• Transaction history
• Geographical location
• Industry type

3.2 Transaction Monitoring

Implement AI-driven monitoring systems such as:

• Actimize: Provides real-time transaction monitoring and alerts.
• FICO TONBELLER: Offers risk scoring and compliance checks.

4. Anomaly Detection

4.1 Utilize Machine Learning Models

Employ machine learning techniques to identify unusual patterns in transaction data.

4.2 Example Tools

Consider using:

• Palantir: For advanced data analytics and visualization.
• DataRobot: For automated machine learning model creation.

5. Reporting and Documentation

5.1 Generate Compliance Reports

Automate the generation of reports detailing findings and compliance status.

5.2 Document Findings and Actions Taken

Ensure all actions taken in response to alerts are documented for audit purposes.

6. Continuous Improvement

6.1 Feedback Loop

Implement a feedback mechanism to refine AI models based on new data and outcomes.

6.2 Ongoing Training

Regularly update AI systems with new training data and compliance regulations.

7. Regulatory Compliance and Audit

7.1 Ensure Compliance with AML Regulations

Regularly review processes to ensure adherence to local and international AML regulations.

7.2 Conduct Internal Audits

Schedule periodic audits to assess the effectiveness of the AML compliance monitoring process.