Quantexa Launches New Cloud-Based AML Tool
Quantexa, a London-based analytics and data solutions company, announced on Wednesday the launch of a new cloud-based anti-money laundering (AML) tool specifically designed for mid-sized and community banks in the United States. This offering, known as Cloud AML, is hosted on Microsoft’s cloud computing infrastructure, aiming to assist smaller financial institutions in combatting the rise of crypto-related financial crimes.
Key Features and Benefits
According to a statement from Quantexa, the tool streamlines investigations into financial offenses, allowing banks to operate more efficiently while maintaining compliance with federal regulations that apply uniformly to all financial entities, regardless of their size. One of the key features of Cloud AML is its capacity to minimize “false positives” during transaction monitoring.
Industry Insights
In a related survey conducted earlier this month, Quantexa found that 36% of professionals in the AML sector believe that digital assets will significantly influence the industry within the coming five years. This launch comes in the wake of the recent introduction of stablecoin legislation in the U.S., a move that is anticipated to foster increased competition in the financial sector from major players such as Bank of America and Citigroup.
Trends in Banking
While certain banks are eagerly adapting their services to leverage digital assets, others remain primarily focused on ensuring effective tracking of capital movements within the context of potential financial crimes. Chris Bagnall, head of financial crimes solutions at Quantexa for North America, highlighted this trend in remarks made to Decrypt. He noted,
“Banks are essentially just seeking ways to monitor transactions. Only a handful of the most innovative institutions are actively looking to turn this area into a business opportunity.”
Bagnall elaborated that banks can track transactions between customers and cryptocurrency exchanges, yet they often lack insights into the origins of those funds. As stablecoins gain traction in everyday financial transactions, the potential for infrastructure providers to become essential links in the exchanges of digital and traditional currencies increases. He observed that stablecoins are incentivizing banks to adopt a more holistic approach toward recognizing crypto-related risks—a shift from the past, when financial institutions were more cautious and informed when engaging with crypto-native businesses, but may now face similar risks with individual consumers.
