"It takes a network to defeat a network."
One of the key themes that emerged from the United Kingdom Financial Conduct Authority's 2019 AML & Financial Crime TechSprint was the importance of data and knowledge sharing amongst relevant bodies in identifying and impeding complex criminal networks.
Ten cross-industry teams, with more than 100 participants, competed in this year's event, as well as c-suite executives, professional bodies (such as FATF) global regulators, law enforcement representative and academics who attended the final presentations and competition judgment.
Members of Team Oracle (Oracle Research Labs – represented by Iraklis Psaroudakis, Sabrina Senna, and remotely assisted by Miroslav Cepek and Riva Nathans, and Financial Crime and Compliance Management, represented by Matthew Long) collaborated with Westpac, Citi, Privitar, DataRobot, Bureau van Dijk, the Financial Conduct Authority (FCA) and Companies House as "Team Citadel" and emerge as winners in this year's highly competitive event.
The Team Citadel prototype solution was developed to help address the pending statutory 5th Anti Money Laundering Directive ("5AMLD") requirements associated with UBO reporting and data discrepancies between Financial Institutions and Companies House and to help reconcile those discrepancies without breaching privacy legislation and data protection. Besides, this solution was also submitted for consideration as part of the consultation to enhance the role of Companies House and increase the transparency of UK corporate entities and help combat economic crime.
The Citadel team was able to provide valuable insights into the synthetic data supplied during the TechSprint, such as identifying and highlighting missing or inconsistent Company and UBO data held by Companies House and the Banks used in this exercise.
Oracle's main Team Citadel focus was on using #graphtechnology #PGX to create the golden networked source of UBO data, post encryption and to carry out some examples of graph query pattern matching (such as finding and visualising the "neighbourhood" of the UBO(s) with connections to the most companies), graph analytics algorithms (such as Pagerank) and network visualization.
Oracle was also one of only five technology solution providers invited by the Regulators to participate in the supporting AML Techfair event, which was an opportunity to discuss and present our innovative Anti-Financial Crime Solutions to attendees. The session focus was on the usage of AI/Machine powered solutions to uplift investigations and the potential to facilitate information sharing.
Matthew Long, Director, Financial Crime & Compliance Solution Consulting, who was part of Team Citadel and represented Oracle at the AML TechFair noted, "An underlying theme of the TechSprint was, "it takes a network to catch a network," and the FCA certainly helped create that environment with this event. The complex cross-jurisdictional problems facing the financial industry today can only continue to benefit from cross-organization support, collaboration, and sharing. This was a genuinely well organized, inspiring event and at times an emotional reinforcement, if we needed it, that partnership and collaboration is the only way forward in the ongoing fight against financial crime.
Iraklis Psaroudakis, Principal Member of Technical Staff, Oracle Labs, who was part of Team Citadel noted,
"The TechSprint is an incredible event that brings together great minds across multiple organizations and fields to help tackle some of the financial world's most complex data and financial crime problems. It was a great honor and experience to be a part of the Citadel team."
More About FCA's TechSprint
To help address this global challenge, this year's Global AML and Financial Crime TechSprint (run between 29 July - 2 Aug), explored the potential for Privacy Enhancing Technologies (PETs) such as homomorphic encryption, zero-knowledge proof, secure multi-party computation, etc. to improve the ability of financial institutions, regulators and law enforcement to share information that will assist in the detection and prevention of money laundering and financial crime while remaining compliant with data protection and privacy legislation.