Japanese Banks to Deploy Shared System to Monitor AML/CFT

Fazzaco learned that Japanese banks were focusing on deploying a shared platform for AML/CFT monitoring and screening, for the purpose of dealing with the issues of false positives in the banking industry.

According to Japan’s Financial Services Agency (FSA), the shared platform has proven to be successful at enhancing the effectiveness and efficiency of AML/CFT monitoring and detection.

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The FSA highlights that banks play a a key role in combating AML/CFT threats through their transaction monitoring, screening system, and reporting of suspicious or unusual transactions. Whereas, the costs of investing in and maintaining these systems, and integrating them with legacy systems are on the increase. Also, the banks are burdened high false positive rates in their transaction monitoring systems.

To handle this, more efforts are made by the FSA to adopt new technology for AML/CFT.

“New technologies such as AI (artificial intelligence), blockchain, and RPA (robotic process automation) are used in various phases of AML/CFT to improve the effectiveness of controls,” said the FSA.