ThetaRay debuts AML-as-a-Service


AI-based analytics provider ThetaRay unveiled a cloud-based version of its popular anti-money laundering (AML) solution on April 26, 2021, in a bid to make fraud prevention accessible to a broader group of banks, fintechs, PSPs and payments infrastructure companies. The cloud-agnostic service works with public and private clouds such as Azure, Google, AWS, IBM Cloud and others, stated Shaun Smith-Taylor, senior director and global head of solutions at ThetaRay.

"SaaS solutions are not only more cost effective and scalable but also increasingly more transparent in terms of security than the on-premises model," Smith-Taylor said. "Accreditation to standards such as ISO27001 and SOC2 test and validate high-quality service and compliance to safety regulations, and drive product excellence on a global scale."

Mark Gazit, chief executive officer at ThetaRay, observed that cloud-based solutions gained widespread adoption during COVID-19. Their advanced capabilities can detect new threats and require minimal resources and no hardware, he added. “Our customers are increasingly adopting cloud-based solutions due to their stability and security,” he said. “Our fully scalable cloud service accelerates time-to-value, reduces the cost of acquisition, and enables companies to increase revenues quickly."

Advanced capabilities

Smith-Taylor agreed that SaaS solutions can help enterprise customers protect cross-border payments and numerous enterprise clients are transitioning from on-premises to ThetaRay's out-of-the-box packaged solution. The SaaS offering is more productive and cost-effective than traditional rules-based solutions, which have historically been seen as "good enough" and tantamount to a tick box for compliance functions, he stated.

ThetaRay's cloud-hosted AML solution can expose hidden money laundering schemes in cross-border transactions, using proprietary machine learning to analyze SWIFT traffic, risk indicators, and client/payer/payee data to detect anomalies, Smith-Taylor noted. The service decreases total cost of ownership and shortens time-to-value from months to days, while providing the same level of security as on-premises solutions, he added.

Smith-Taylor went on to say that recent high profile AML cases such as Danske Bank and the Russian Laundromat cases have shown that reliance on such solutions cannot identify "unknown cases." These worst-case scenarios are driving active adoption of AI-based and cloud-based AML security solutions among financial institutions and regulators.

Agility, flexibility

Danske Bank is facing multiple legal actions for its role in facilitating money laundering schemes, according to the Organized Crime and Corruption Reporting Project (OCCRP), which detailed alleged abuses in a Sept. 23, 2020, article, titled, "Danske Bank Facing US$1Billion Money Laundering Suit." OCCRP journalist Will Neal reported that Danske Bank facilitated an Azerbaijani "slush fund" and played a role in the Russian Laundromat scandal that exported $20.8 billion out of Russia while going undetected by some of the world's largest banks.

"It will not be the bank’s only day in court," Neal wrote. "A slew of other lawsuits are currently in the works, including one brought by more than 70 legal entities representing 155 institutional investors and led by the pan-European consultancy firm Deminor."

Smith-Taylor noted that ThetaRay's proprietary, unsupervised machine learning and full-stack technology can help customers protect cross-border payments and stay ahead of fraudsters. "At the heart of the ThetaRay SaaS solution is agility and flexibility, providing robust scalability management to customers in the highly regulated financial services sector," he said. "ThetaRay supports customers of all sizes to meet the changeable needs of their businesses and enable them to focus on their core drivers, growing and [maximizing] revenue opportunities."

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