Oracle AI Tool Strengthens Financial Crime Prevention in Banks

Oracle’s new AI cloud tool for banks offers cost-effective tests to help detect money laundering risks

Ben Wodecki, Jr. Editor

April 11, 2024

2 Min Read
Green and white bank notes rolled into wads, kept together by colored bands
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Oracle’s financial technology division has launched an AI-powered cloud service to empower banks to tackle money laundering.

Oracle Financial Services’ Compliance Agent performs hypothetical scenario testing, enabling banks to scrutinize transactions and identify suspicious activities

Compliance Agent creates “what-if” scenarios so banks can test the effectiveness of their transaction monitoring systems on new financial products.

Compliance Agent users can adjust test thresholds, allowing the tool to evaluate different types of risk while extracting insights on the effectiveness of controls such as transaction limits.

According to the United Nations Office on Drugs and Crime (UNODC), between two to 5% of global GDP, or $800 billion to $2 trillion, is laundered annually.

According to Oracle, financial institutions face significant challenges handling financial crimes, juggling both cost and complexity of cases

Compliance Agent is designed to be inexpensive to deploy and equips banks with tools to gather evidence to support business decisions as well as help transaction monitoring systems identify new types of suspicious transaction patterns to keep up with risk trends.

Oracle said the new Compliance Agent’s tests can reduce the time to market for new products while enabling banks to meet their finance crime obligations more effectively.

Related:Oracle Taps Palantir in New Cloud, AI Partnership

“AI and machine learning have tremendous potential to increase the effectiveness of anti-money laundering and other financial crime detection programs to deliver higher efficiencies in the transactional modeling process,” said Jason Wynne, global vice president of finance, risk and compliance product development at Oracle Financial Services. 

“Putting Compliance Agent in the hands of financial-crime compliance officers will help enable banks to thwart potential money laundering opportunities more quickly and economically.”

Oracle’s Compliance Agent follows the launch of a wide range of cloud-based generative AI apps to support specific enterprise use cases.

Oracle recently partnered with Palantir to offer businesses joint data and AI solutions.

About the Author(s)

Ben Wodecki

Jr. Editor

Ben Wodecki is the Jr. Editor of AI Business, covering a wide range of AI content. Ben joined the team in March 2021 as assistant editor and was promoted to Jr. Editor. He has written for The New Statesman, Intellectual Property Magazine, and The Telegraph India, among others. He holds an MSc in Digital Journalism from Middlesex University.

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