Machine Learning in Compliance: This is how banks and financial service providers optimise sanctions & PEP screening in the KYC process

Over the past two decades, the compliance function has clearly gained in importance for banks. This is partially against a background of numerous money-laundering scandals and embargo/sanction regimes. In an attempt to prevent money laundering and the financing of terrorism, various quantitatively oriented approaches have become established, especially the riskbased approach, which was recommended by the Financial Action Task Force (FATF) as early as 2007 and implemented in the banking sector in 2014.

Our white paper provides a brief overview of ML, before the actual approaches relevant for name matching application are briefly presented. A real-life application and the results of the linked project are then discussed. The white paper ends with a brief summary.