The power of GOST vs. traditional search engines.
Over the years, traditional search engines like Google and Bing have transformed the way risk and compliance professionals perform screening, monitoring, and investigations of customer, correspondent, and vendor populations by opening the internet to the public. However, there are four primary reasons that traditional search engines remain imperfect tools for large-scale screening and vetting
Social media is being used by well-resourced foreign actors to spread political disinformation globally. Since 2014, there have been at least 60 distinct campaigns targeting more than 30 different countries. Over 70 percent of these campaigns have been conducted by Russia, with the United States as a frequent target. On April 20, 2020, the United States Senate Select Committee on Intelligence released its Report on Russian Active Measures Campaigns and Interference in the 2016 U.S. Election, in which it demonstrates a coherent basis to conclude that Russia interfered.
How can we meet the dual goals of speed and fraud risk mitigation? How do financial institutions get money out fast, while responsibly completing due diligence? How do we mirror the success of the ARRA disbursement, while avoiding a Katrina-esque failure?
Technology can enable the necessary transitions from reactive response to proactive prevention. The United States has institutions that deal with fraud, but they are mostly reactive and deterrence-based. Leveraging advanced technology will get money to those who deserve it faster, while preventing criminals from exploiting this tragedy.
There is a new model for the AML/CFT system that provides a more effective and efficient means to prevent illicit finance and manage compliance risk. This model moves beyond traditional rules-based monitoring and toward one that facilitates information sharing among various authorities and institutions across the globe; enables collective learning on complex threats; distributes and shares risk; and simultaneously safeguard customer privacy and data.
It is called Federated Learning, and it is brought to you by Consilient.
Whether it comes to pricing and extending credit, predicting fluctuations in the market, or protecting against operational breakdowns or abuse by illicit actors, financial institutions are in the business of managing risk. But in each of these domains, a bank’s risk management decisions are only as good as the information and analytic tools they have at their disposal. Where such information is lacking—or, worse, where well-established ways of measuring risk are potentially biased or misleading—banks may shy away from doing business with certain customers or markets, leaving already underserved populations without vital access to financial services and missing out on business opportunities.