HSBC to deploy AI to stop money laundering

HSBC is using artificial intelligence to help it spot money laundering, fraud and terrorist funding.

The bank is integrating the AI software of Quantexa, a UK-based start-up, to screen the vast amounts of data it holds on customers and their transactions against publicly available data, in a big to tackle financial crime.

Ray O’Brien, HSBC’s global risk COO and head of global risk analytics, said: “HSBC is continuously looking for ways to build on our existing capabilities to detect and prevent financial crime. Following our investment in Quantexa, we are looking forward to working closely with the company to utilise its technologies as we become more intelligence led in our approach to financial crime risk management.”

The deployment of the technology follows a pilot of the software with HSBC in 2017 and will see the global bank and data start-up work together to better detect potentially illegal activity in its broader context, helping the bank fulfil its regulatory responsibilities and provide better understanding of the overall risk.

Last year, Quantexa closed a $3.3m investment, led by Albion Ventures and HSBC.

Vishal Marria, CEO of Quantexa, added: “We are honoured to be working with HSBC in their mission to combat money laundering. Our market-leading technologies will be supporting the bank to join the dots of all their data to give a broader understanding of their customers and transactions across the globe. Through a better understanding, HSBC will be better equipped in their fight against financial crime.”

Headquartered in London, and with offices in Brussels and Sydney, Quantexa’s technology claims to enable companies and institutions to make better decisions from their data.

Its technology is based on the latest developments in big data software and uses real-time entity resolution with network analytics and AI to knit together vast and disparate data sets and derive actionable intelligence.

Last month, Visible Alpha, a startup helping analysts and fund managers cope with regulatory changes, landed further investment from HSBC.

Earlier this year, the company closed a $38m investment round from new investors Goldman Sachs, Banco Santander, Exane BNP Paribas, Macquarie Group, Royal Bank of Canada and Wells Fargo. The round also featured additional capital from its founding investors, Bank of America, Citi, Jefferies, Morgan Stanley and UBS.

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