In its latest bid to combat financial crimes, Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) is intensifying its reliance on artificial intelligence (AI) technology to detect suspicious transactions. The agency recently imposed fines totaling C$9 million ($6.7 million) on Royal Bank of Canada and CIBC, setting a record for individual bank fines. The use of AI technology allows FINTRAC to analyze larger volumes of data more efficiently, making it easier to identify and investigate money laundering and other illicit activities.
“AI is enabling us to analyze a greater amount of data than ever before, empowering our team to detect more suspicious activity,” explained Donna Achimov, Deputy Director for Supervision at FINTRAC. The agency has also benefited from increased staffing levels, with a 28% increase from two years ago, aided by new powers related to national security.
As part of its enhanced efforts, FINTRAC is exploring partnerships with financial institutions to further minimize risks. By utilizing advanced technology to scrutinize transactions, the agency aims to identify potential illicit activities more effectively and collaborate with banks to ensure compliance. Recent figures reveal that about 75% of all suspicious transactions reported between April and September 2023 were identified by financial institutions themselves.
The decision by FINTRAC to publicly name the banks fined for compliance violations instead of handling administrative penalties privately suggests a ramp-up in enforcement activities. AML and legal experts predict increased scrutiny and enforcement in the future, urging financial institutions to be vigilant in preventing the infiltration of “dirty money.”
With Canada estimated to see between C$100 billion and C$130 billion laundered annually, FINTRAC’s adoption of AI technology marks a significant step forward in tackling financial crimes and protecting the integrity of the country’s financial system.
The source of the article is from the blog klikeri.rs