How AI Can Help Identify Front and Shell Companies
BlackSwan’s Harinder Sudan features on FinTech Futures today, explaining how #AI can help financial institutions spot potential front and shell companies more accurately.
Front and shell companies play a pivotal role in facilitating financial crime, particularly money laundering, political bribery and corruption and tax evasion, which cost the global economy trillions of dollars each year.
This compels financial institutions to identify potential client and counterparty front and shell companies more accurately — especially during KYC and periodic screenings. While illicit actors are becoming more sophisticated in their approach, financial institutions are not left alone. AI helps by detecting red flags and utilising graph analysis, machine learning algorithms (ML), and natural language processing (NLP) to calculate risk scores for clients and counterparties.