Recently, WorkFusion and our partner PwC hosted a webinar on automating AML featuring Michael Lammie, a leader in PwC’s Financial Crimes Unit. During the webinar, available on-demand, we received many smart questions and we are happy to answer some of the most interesting ones here.
1. How easy is it to implement a use case like automation of Negative News Adjudication?
An AML process like Negative News Adjudication can be implemented into production within 4 weeks.
WorkFusion’s AML Expert Bots help automate complex processes quickly. This approach includes prebuilt workflows, quick connections to common systems and pre-trained but customizable bots. Implementation can be compared to hiring a colleague from another bank, one who is already trained on AML and comes with useful experience that speeds up how quickly they are productive.
A more bespoke AML process will typically take 4 weeks to pilot and 4–8 more to put in production (8–12 weeks total).
2. How are differences from bank to bank addressed in AML processes?
WorkFusion’s SPA is a flexible platform, so automations can be tailored to the requirements of a specific bank or financial institution.
Learning bots are trained by your staff, learning from real-world examples. They can be trained in real time and on premise (or to the cloud), which creates your own intellectual property. This contrasts with many AI tools, which are trained once, remotely and only in the cloud.
Customers can also easily add their own connections. Using rules (APIs or RPA), one can quickly integrate with proprietary systems and apps.
This customization can be easily implemented by the customer, with WorkFusion training available through our Automation Academy. Trusted partners including PwC also have a ready-trained bench of WorkFusion experts to help guide and accelerate if needed, and WorkFusion can also provide support directly.
3. What other news sources can be used? What can we change?
WorkFusion can use any news source. Typical sources are pre-built, like Google News and Factiva. A customer can also add niche providers or their own internal data sources.
Moreover, WorkFusion works in 135 languages, and with non-Latin characters and alphabets, so global sources are encouraged.
Anything about the Negative News Search process can be changed. While the pre-built components help accelerate deployment and are based on best practices at top 10 global banks, every step is open to customization to meet bespoke requirements.
4. How do I address all other AML use cases?
AML is a core focus area of WorkFusion, with a dedicated product team, developing specific functionality.
The core WorkFusion product, Smart Process Automation, is a flexible and process-agnostic platform. It’s used across the world and in many industries to automate manual work (with customers ranging from Spotify to Canadian Tire!).
This means that it isn’t limited to just those AML processes with Expert Bots, but can be applied across AML, KYC, Financial Crimes, Compliance and Risk processes.
We have customers who automated over 100 processes in AML and who continue to scale their AML transformation programs at pace.
5. How do Learning Bots work? How do they analyze news?
Think of an employee you hire to perform investigations. There are skills you expect them to already possess on Day One, and there are skills you expect them to learn. For example, you expect them to be able to read the news and check for key words. They may need additional training on how to judge different risk factors and summarize findings. Over time, as they work on more cases and receive guidance from their manager, they will become better at the job.
Similarly, WorkFusion comes with NLP capabilities — the bots can read the news and have a keyword dictionary. AI is then used to help the bot interpret the news, judge the different risk factors, make better decisions over time, and produce ever-better summaries of its findings.
The specific AI technology is supervised machine learning. The bot learns from people. Its effectiveness and speed are further supported by a cutting-edge AI technique called “Weak Supervision” which reduces how much training is required, so the bot can learn faster.
6. How do we justify use of AI to regulators?
Fortunately, these days, regulators are encouraging the use of “innovative approaches” in AML. U.S. federal banking agencies and the Financial Crimes Enforcement Network (FinCEN) issued a joint statement in December 2018, specifically welcoming Artificial Intelligence to “strengthen compliance approaches… enhance transaction monitoring system… [and] … maximize utilization of banks’ BSA/AML compliance resources.”
WorkFusion offers a range of capabilities to explain what AI is doing and how it is performing:
- Learning bots are supported with AutoQC, which allows people to dynamically review bots’ work, or, where appropriate, make the process fully attended or unattended
- For sensitive processes, this human-in-the-loop allows for a “maker checker” model, where the final decision is always made by a person
- Learning bots are trained based on business logic, and are easy to configure to use “white box” models
- Preventive controls, audit trails and AI-era security help keep the process compliant
- Analytics through the end-to-end process make it easy to monitor the performance of both bots and staff, down to a decision/field level
Watch our Anti-Money Laundering webinar here. We’ve also summarized 8 of the best points in a recent blog post.
To learn more about WorkFusion and our AML solutions, email us at firstname.lastname@example.org.