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Anti-Money Laundering

Financial crime is harder to detect and prevent than ever before. New technologies and tactics, alongside the growth of cryptocurrencies, have opened fresh avenues for money laundering and terrorist financing. Despite investing billions in compliance solutions, financial institutions are still struggling to build cost-effective and efficient compliance frameworks that meet regulatory requirements.

Palantir Foundry combines tools for entity resolution, Know Your Customer (KYC), transaction monitoring, Enhanced Due Diligence (EDD), scenario analysis, alerting and investigation case management and advanced sanctions screening with the flexibility to meet a bank’s unique needs now and in the future.

Palantir Foundry is a proven solution for financial crime, transaction monitoring and threat intelligence

Financial institutions need to comprehensively understand the behaviour of their customers, counterparties and all related networks. In practice, this requires joining billions of records across data silos, arming teams with custom-built, no-code tools to analyze that data quickly, and providing secure infrastructure for them to collaborate, engage with regulatory bodies, and write findings back to the core system.

Existing solutions often flood teams with alerts that are too noisy and inaccurate — and it takes too long to iterate with vendors on fixing alerts in production. The lengthy process for gathering investigative evidence makes the findings obsolete the moment they're generated.

In the past banks have tried to meet these needs with inflexible out-of-the-box systems, rules engines or open source building blocks. Palantir combines off-the-shelf value with the openness, flexibility, and robust controls that banks need to ensure they can meet regulatory demands and avoid being locked into a single vendor. Modules for common workflows reduce duplicative work and improve effectiveness of controls, and as an open platform designed to prevent lock-in, Palantir integrates with those key systems banks want to maintain.

Data integration and security create a dynamic central client foundation

Successful compliance function starts with a holistic understanding of the customer and their entire network of related entities. Without this foundation, even the most sophisticated AI-based approach will not succeed, and many solutions rely on data that is already integrated and properly formatted — a nearly impossible task across multiple jurisdictions, subsidiaries and products.

Palantir Foundry provides comprehensive data integration, validation, lineage, access controls and security for banks to rapidly integrate all of their relevant internal and external data. Palantir’s machine learning-based entity resolution and advanced network-building models enable easy and accurate linking of customers, networks and unknown counterparties. This empowers the bank with a foundation for all future analytics and workflows, and a central client file — or “customer 360” — that can be updated dynamically across AML functions.

Initially built for use by government intelligence and defence agencies — with privacy and civil liberties concerns at top of mind — Palantir Foundry includes unparalleled, granular security controls. Government and commercial enterprises around the world trust Palantir software to facilitate compliance with diverse privacy and security standards, including the GDPR and data residency laws. All data is encrypted both in transit and at rest, without exception, and Palantir offers high auditability and role-based access control frameworks so that all teams can access and share the necessary data without compromising security.

Holistic risk-based models and scenarios outperform static rules-based approaches

Palantir provides out-of-the-box models for behavioral risk scoring that run across a bank’s newly integrated network of related entities. Our approach has been shown to significantly improve alert accuracy and efficiency, while providing higher-quality reports to regulators, with transparent and explainable models to easily demonstrate effectiveness and full governance to regulators.

It can be challenging for banks to move away from legacy, inefficient rules and toward dynamic risk models while meeting regulatory demands. Palantir Foundry offers critical monitoring and alerting scenarios, alongside advanced risk models, so banks can gradually migrate away from a static rules-based approach, while demonstrating the long-term effectiveness of the risk-based approach. Our clients have successfully decommissioned legacy systems after a dual-run period that demonstrates Foundry’s effectiveness to the regulator.

Investigative tooling and reporting accelerate triage and review

Even the most sophisticated risk models are not effective if analysts can’t investigate them quickly and thoroughly and with full governance. Palantir guides analysts through the investigative process so they can quickly zoom in on the most important risks. With a holistic understanding across transaction, relationship, counterparty, KYC, and sanctions risk, analysts can more quickly triage alerts and ask relevant follow-on questions to disposition the entire network of related entities rather than one customer at a time. Built-in workflow management enables timely and proper escalation, triage, and review — with full collaboration and transparency across all relevant teams.

Once an investigation is complete, Palantir generates all required reporting information with full data lineage to source systems. Analysts can add their own insights and automatically file reports with the regulator. Reports update dynamically as underlying information changes, and analysts are alerted to new risks that arise.