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Privacy-Enhanced Financial Crime Detection

Banks and other financial institutions are bound by strict regulatory controls that require them to detect and prevent money laundering, terror financing and fraud. Yet, despite the many sophisticated forensic accounting tools and methods at their disposal, global businesses estimate losses of an astounding $1.45 trillion per year due to financial crimes. 

 

Without real-time, cross-organizational intelligence sharing, financial crimes can easily fly under the radar, especially when criminal networks, such as the masterminds behind the Russian Laundromat scheme, are geographically distributed and employ shadowy shell companies and multiple banks to obfuscate illicit activity. However, prevailing legal and regulatory frameworks impose significant intelligence-sharing constraints on financial service providers. As noted in the 2017 Financial Action Task Force (FATF) report, Private Sector Information Sharing, data protection privacy (DPP) laws inhibit financial institutions, including their own branches and subsidiaries, from sharing data that can prevent such crime. 

 

In order for banks to collaboratively tackle the seemingly insurmountable challenge posed by financial crimes in a privacy-compliant manner, a new innovative type of intelligence sharing is required.

Our Solution: Financial Crime Risk Management

QEDIT is a cloud service that enables institutions to detect financial crime through the provision of new risk indicators based on cross-organizational insights. Notably, this is achieved without sharing or exposing any private data. QEDIT uses robust Privacy-Enhancing Technologies like Multi-Party Computation (MPC) and Homomorphic Encryption that enable data matching and computation on encrypted data. The solution is designed to prevent financial crimes in a variety of contexts:

 

  • Customer Onboarding
  • Transaction Monitoring
  • Financial Investigations