Coalesce.ai, along with the Boston RegTech Meetup Group, had the incredible privilege of hosting U.S. Congressman, Trey Hollingsworth and a panel of industry leaders for a powerful and engaging discussion during Boston FinTech week around the value of AI in detecting financial crime.
Government and regulators are taking meaningful steps to become a constructive force for collaboration and innovation in the FinTech/RegTech space.
We’d like to extend a huge thank you to Congressman Trey Hollingsworth for his opening remarks and discussion, panelists Mona Vernon (Head of Fidelity Labs), Haimera Workie (Head Of The Office Of Financial Innovation at FINRA) and moderator Charles V. Senatore (Senior Advisor, Devonshire Investors, Fidelity Investments) and Founder Of The Boston RegTech Meetup. Additionally, all the industry leaders, innovators, and members of the FinTech community who packed the room with energy and excitement!
When asked about plans in Congress to address outdated Anti-Money Laundering requirements, the Congressman’s response was extremely promising and proactive:
“What I am really pushing on is to take a step back and say the entire way that we do this (AML) is outdated. This is an area that is truly right for innovation. It’s the perfect crucible for us to utilize AI and machine learning and to empower FinCEN to do more of what they do. It’s a perfect win-win.”
“There’s the opportunity for FinCEN to get more leads, and to burden consumers even less. We could a better job of that if we leverage technology.”
Financial crime schemes and money laundering use the latest technologies can be fought by employing emerging technologies.
Why is this so important? The estimated amount of money laundered globally in one year is 2 – 5% of global GDP, or $800 billion – $2 trillion in current US dollars.
What is promising is the involvement of the Government, Financial Institutions, FinTech startups and innovators around powerful technologies like machine learning that can play a bigger role in AML initiatives.
As Congressman Hollingsworth stated,
“I had a large financial institution come into my office and say they spend 400 million a year on their KYC/AML program but that they have no idea if 400K a year is stopping 1 money launderer/year or 100K money launderers a year. We (Congress) could help FinCEN get to a better answer to this.
We applaud Trey for his passion and innovative approach to change. We believe this is big step in the right direction and we look forward to continued collaboration with the Government, financial institutions and industry leaders to fight financial crime.
As Trey says,