NTU Singapore to Develop AI, ML Tools to Fight Money Laundering

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The research team is also seeking to create an innovative technological prototype that can facilitate real-time intelligence sharing among institutions.

A multi-disciplinary team from Nanyang Technological University (NTU), Singapore is embarking on a research project to help the wealth management institutions combat money laundering using artificial intelligence (AI) and machine learning (ML).

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Supported by the Monetary Authority of Singapore (MAS)’s Artificial Intelligence and Data Analytics (AIDA) Grant under the Financial Sector Development Fund, the project seeks to develop new AI and ML capabilities to help institutions detect unusual money flows or transactions that might be signs of money laundering.

The NTU team consisting of experts from its Wealth Management Institute (WMI), School of Computer Science and Engineering (SCSE) and Data Science and Artificial Intelligence Research Centre (DSAIR), is also seeking to create an innovative technological prototype that can facilitate real-time intelligence sharing among institutions.

“With new technological advances and paradigms, the tools available to money laundering perpetrators may disrupt the financial institutions’ existing AML mechanisms. This collaboration with NTU researchers and experts presents a win-win solution for everyone involved,” WMI Chief Executive Officer Ms Foo Mee Har said.

WMI will organise forums and dialogues from the third quarter of 2019 to share the research findings in stages.

Expert panel to guide the project

An expert panel and working committee, comprising industry leaders and experts from leading financial institutions and regulators, will provide strategic guidance to the project.

The research is also backed by multinational investment bank and financial services firm UBS that has provided seed funding.

“Many banks have been applying the same concepts in system-based AML Transaction Monitoring for years, that generate a high number of false positives,” said UBS managing director Mabel Ha, who chairs the expert panel.

“Within this project we want to seek new and practical ways for wealth management institutions to apply AI and machine learning techniques to achieve superior results,” he added.

The experts hope that deployment of such state-of-the-art technologies and data analytics capabilities will help address the rising money laundering risks in the region.

 

With inputs from Regulation Asia, Connected to India   

 

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