Anti-Money Laundering (AML) , Fraud Management & Cybercrime

The Role of Predictive KYC in Fighting Money Laundering

How can automation help to reduce money laundering fraud? Larry Gordon and Kathleen Gowin of the consultancy Endurance Advisory Partners describe how predictive KYC can help mitigate risks (see: Financial Fraud in 2021: A Forecast).

“Traditional KYC looks at past activities or events to determine the initial risk profile that drives bank monitoring and observations," Gordon says. "Predictive KYC evaluates more than the individual customer’s activities by evaluating their related ecosystem to determine if there are any additional risk influences that should be monitored. It frequently searches for any activity or events that have taken place since the most recent risk determination was made.”

In a joint video interview with Information Security Media Group, Gordon and Gowin discuss:

• New tools banks are deploying to fight against money laundering;
• The role of automation in fighting fraud;
• How predictive KYC can help reduce false positives in fraud detection.

Gordon, managing director of risk management at Endurance Advisory Partners, is a senior risk professional who has designed and implemented risk mitigation processes and tools. He has worked in the financial services industry for more than 25 years in a variety of roles and is also a Certified Anti-Money-Laundering Specialist.

Gowin, managing director, treasury and payment services at Endurance Advisory Partners, formerly was global managing director, financial institutions group, at Bank of America.