New York State’s Anti-Terrorism Transaction Monitoring and Filtering Program Regulation requires New York DFS-regulated financial institutions to “maintain programs to monitor and filter transactions for potential Bank Secrecy Act (BSA) and AML violations and prevent transactions with sanctioned entities, and certify compliance with the regulation annually to DFS.”

Significant to this new regulation is that institutions must review their transaction monitoring programs to ensure they comply with regulatory safeguards. Institutions must also adopt either an annual board resolution or senior compliance officer attestation to certify compliance with the DFS regulation beginning April 15, 2018.

QuantaVerse is uniquely able to provide institutions and their senior compliance leadership with data-driven solutions to enhance their existing transaction monitoring systems. QuantaVerse employs state-of-the-art proprietary algorithms to find hidden risks in the flood of transaction data that institutions deal with daily. QuantaVerse’s data analysis is powered by artificial intelligence that helps institutions identify where their risks are today and where they are migrating.

Leveraging QuantaVerse’s AI and data science-powered platform, financial institutions can address the New York DFS regulation in the following ways:
• Quickly identify counter-terrorism finance (CTF) red flags through CTF-specific algorithms;
• Provide predictive analysis of customers who might engage in CTF typologies in the future; thereby enhancing transaction monitoring and Know Your Customer (KYC) effectiveness, and;
• Provide the Board or senior compliance officers with added assurance that their transaction monitoring program adheres to the regulation before they sign their annual attestation.

Historically, financial institutions have relied on ineffective rules-based monitoring systems that lead to excessive false positive alerts as well as case management software to track manual and time-consuming investigations. An automated, AI-based approach, however, can be much more efficient, effective and cost-effective than traditional data analytics approaches.

“QuantaVerse applauds the New York DFS for enacting these regulations,” explained David McLaughlin, CEO of QuantaVerse. “Strengthening BSA and AML compliance among financial institutions is essential to choking off the money that funds terrorism and other illegal activities. With our AI and data science platform, financial institutions’ compliance leaders and AML teams can have confidence that hidden risks are being discovered and criminals are being stopped from laundering money through their organizations.”