In their fight against money laundering, banks can benefit if they are able to exchange data with each other. But how can that be done without affecting the privacy of their clients? TNO is currently developing a solution to that problem, in partnership with Rabobank and ABN AMRO. They are being greatly assisted by the opportunities that come with artificial intelligence.
Money laundering very often involves large sums. However, the more experienced criminals make multiple transactions with different banks, generally using a mix of national and international banks. On top of that, they regularly use cryptocurrencies when laundering money. In short, it is clear how difficult it is for banks to gain a clear picture of these dirty dealings.
The key? Multi-party computation (MPC)
When it comes to tackling money laundering, the solution lies in the mutual exchange of data. Obviously, though, this has to remain within the confines of the relevant privacy laws. And to do that, you need a healthy dose of artificial intelligence. Working in close partnership with Rabobank and ABN AMRO, TNO has devised a multi-party computation (MPC) solution. With the help of an AI system, the solution can be used by banks working together to analyse joint data, including at international level. And thanks to innovative encryption technology, this can be achieved in a way that obviates the need for any person or any system to view the data. It is this guaranteed privacy and confidentiality that makes the solution suitable for use at international level. This is an ideal starting point for exposing possible money laundering through data analysis.
Richer datasets, thanks to AI
The MPC solution is also highly suitable for detecting fraud and as an investigative tool. The AI system is capable of linking databases with the most sensitive information in a secure manner. This produces richer datasets, which itself creates new application possibilities. An example that comes to mind is the healthcare sector.
Are you involved in the battle against financial crimes like money laundering?
Then please contact Alex Sangers