The Explainable AI Approach to Sanctions Screening
Sanctions are an integral and important lever used by governments and global institutions like the United Nations, the Office of Foreign Assets Control and the European Union to fight financial crime. Based on the global social, security, economic and political climate, these organizations can issue sanctions and restrictions directed at states, individuals, high-risk groups, or legal entities suspected of being involved in illicit activities.
Developments in sanctions screening, especially in recent years, are driving banks’ urgency to accelerate the modernization of their sanctions screening approaches, and increasingly banks are looking to Artificial Intelligence (AI) as the game-changing and innovative way forward to cope with these changes and uncertainties.
This whitepaper focuses on the driving forces behind banks’ sanction screening modernization efforts, and the approaches and reasons behind successful applications of AI in these modernization initiatives, as well as the understanding of the ensuing financial and qualitative business benefits.
Increasing importance of sanctions screening in the fight against financial crimes
Growing sanctions list, complexities, and cost of sanctions screening in banks
Trends in banks moving from archaic and static-rule-based filtering algorithm to AI
How will explainable AI successfully overcome the challenges faced by incumbent AI solutions while not compromising on accuracy and PII
Benefits and ROI of incorporating explainable AI to sanction screen work streams
About the author
CK Loy is a Principal Solutions Consultant at Temenos. Based in Singapore, he is also Temenos’ Global Domain Lead for Analytics and XAI. Earlier in his career, he was a banker where he led analytics teams in areas of portfolio management, analytics and modeling. He then joined the fintech industry in 2014 to continue his efforts on empowering banks to leverage data, analytics and AI to enhance financial inclusions and business successes.
View the Webcast
Our expert speakers, Hani Hagras and CK Loy, discussed the latest trends and technological advancements in AI, with a particular focus on how it can help financial institutions mitigate risk, increase efficiency, and modernize their Sanctions Screening processes to fight financial crime.