Money Laundering, Terrorist Financing and Financial Crime
Tuesday, December 20, 2022
EMPLOYING MACHINE LEARNING IN AN ARTIFICIAL INTELLIGENCE-DRIVEN PLATFORM TO IDENTIFY VIOLATIONS OF THE FOREIGN CORRUPT PRACTICES ACT AND THE BRIBERY ACT
FCPA and Bribery Act violations are generally hard to uncover, because the participants often go to great lengths to conceal the illegal payments made to secure, or keep, lucrative foreign government contracts. Our investigation into American companies sending payments for senior government officials through bogus expenses, or to charities, vendors or agents, or painstakingly creating subsequent bogus consultancies, payable after the recipients have left government service, illustrates my point. Often, bankers or investigators come up empty-handed when seeking evidence of corruption. Technology can now assist in the solution to that knotty problem.
Enter machine learning in an AI-powered platform; whereas before the relationship between confusing, disjointed artfully disguised data was never detected, advanced data science techniques, which means Artificial Intelligence and machine learning solutions can extract information from the data, and report anomalies likely to be FCPA or Bribery Act violations.
FCPA and Bribery Act violations, which slipped through the cracks in the recent past, can now be discovered through analytics powered by AI, and reported to the platform's user, which will reduce its exposure during a time when regulatory civil fines and penalties are on the increase, and which will assist in the proper discharge of responsibility in an risk-based compliance program. Using AI to spot the bribes, and the bribers, is a game-changer, when it comes to stopping corporate corruption, which costs everybody, as bribes, as an additional cost of doing business, always affect prices in the end.