Financial Services
Case StudyHSBC

HSBC uses artificial intelligence to help spot money laundering, fraud and terrorist funding in its network

HSBC has received significant regulatory fines for money laundering and other nefarious activity in its networks. It is using advance machine learning to better understand and link the flow of money between people and corporations.

Context

HSBC has been hit with multibillion-dollar fines for failing to stop money laundering in its own global banking network. It is investing billions in compliance officers and new technologies. It "is bringing in robots to help it spot money laundering, fraud and terrorist funding, as the latest bank to harness artificial intelligence to tackle financial crime more quickly and cheaply than with armies of compliance staff."

The Project

Using dynamic entity extraction - such as the names of individuals and companies - in millions of document and transactions, HSBC is able to build more complete customer profiles showing their money transaction flow in real-time.

Data

"Structured and unstructured data on transactions from different sources, such as phone numbers, addresses, company directors and news reports, to look for suspicious connections."

Results

Results are unreported but it is expected to have a significant reduction in costs of their compliance team and also reduce the risks of non-compliance.

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