- Quantexa released a cloud-based AML tool for mid-size and community banks in the U.S.
- The new product is designed to help institutions detect crypto-related financial crimes.
- The solution operates on Microsoft’s cloud platform and aims to reduce false positives in crime detection.
- A recent survey by Quantexa found that 36% of AML professionals see digital assets as the biggest upcoming factor in anti-money laundering.
- New U.S. stablecoin legislation is expected to bring more competition and prompt banks to monitor crypto activity more closely.
Quantexa, a data and analytics software company based in London, has launched a cloud-based anti-money laundering (AML) solution tailored for U.S. mid-size and community banks. The product, available on Microsoft’s computing platform, aims to assist financial institutions in identifying crimes related to digital assets and cryptocurrencies.
According to a press release, the new offering, called Cloud AML, is designed to help banks make faster, accurate decisions with fewer resources. Quantexa states that the system reduces “false positives,” which are instances where legitimate transactions are mistakenly flagged as suspicious. The solution helps level the playing field for smaller banks, which must comply with the same standards as larger rivals but often have fewer resources.
Chris Bagnall, who leads financial crimes solutions for North America at Quantexa, said the tool addresses the challenges banks face in tracking crypto transactions. “They’re just trying to find a way to monitor it, and that’s pretty much it,” Bagnall told Decrypt. He explained that most banks focus on monitoring inflows and outflows for possible crimes, while only a few are looking to offer crypto services as a business.
A company survey published in June found that 36% of AML professionals believe digital assets will have the greatest impact on the industry over the next five years. The product launch comes after the passage of U.S. stablecoin legislation this summer, which is expected to increase competition from large institutions including Bank of America and Citigroup. With federal regulations now in place, stablecoins—cryptocurrencies pegged to stable assets like the U.S. dollar—are expected to see wider use.
Bagnall noted that banks often remain uncertain about where funds originate after leaving or entering a cryptocurrency exchange. If stablecoin use grows in everyday payments, providers that connect digital and traditional finance could become key points of focus for monitoring transactions.
With these developments, banks are being prompted to look more deeply at their exposure to crypto-related risk. Many previously only encountered these issues with dedicated crypto companies, but now similar concerns extend to individual customers as well.
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