He Bank for International Settlements (BIS) concluded the aurora projectwhich explores new ways to combat money laundering promoting institutional and cross-border cooperation.
The BIS reported on Wednesday that its Nordic technology innovation center successfully completed the project that also combines payments data, privacy-enhancing technologies to protect sensitive information and artificial intelligence.
Almost all of the big money laundering schemes they are cross-border and involve different business sectors.
“Financial institutions often face limitations in detecting potential networks and suspicious transactions due to their reliance on fragmented systems and data”the BIS, which is headquartered in the Swiss city of Basel, said in a statement.
Between 2020 and 2022, the cost of compliance financial crimes rose by 60 billion dollars (about 56,000 million euros) or more per quarter until 274,000 million dollars (257,000 million euros).
Despite this increased spending on the fight against money laundering, the efforts are insufficient because the authorities recover a very small amount of money laundered.
The amount of money laundered globally is between 2 and 5% of global gross domestic product (GDP), however heThe authorities only recover 1% of that amountaccording to Office of the United Nations of Drugs and Crime.
The project was done in collaboration with Lucinity, an Icelandic software services company of artificial intelligence in the area of financial crime compliance.
“Money laundering presents a complex data challenge because it is one of the activities to detect in the world of financial crime”said the director of the BIS’s Nordic innovation center, Beju Shah.
The Aurora project demonstrates how technology can provide better tools to meet these challenges.
However, Shah added, “the technology itself is not a silver bullet” and requires strong public-private collaboration supported by a legal and regulatory framework.
Source: EFE
Source: Gestion
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