Canada’s financial intelligence agency will use AI to combat financial crime.
Money – illustrative photo. Image credit: Alexander Grey via Unsplash, free license
The Financial Transactions and Reports Analysis Centre (FINTRAC) announced that it will be increasing its reliance on artificial intelligence (AI) to identify suspicious transactions. According to the agency, this should enhance its ability to detect financial crimes and reduce their impact on economics.
According to expert assessments, Canada currently faces an estimated annual money laundering volume between C$100 billion and C$130 billion.
Donna Achimov, Deputy Director for Supervision at FINTRAC, emphasized the transformative role of AI in enabling analysts to process vast amounts of data, enhancing the detection of suspicious activities. These latest AI-based enhancements will allow FINTRAC to operate in real-time and address money laundering and terrorist financing risks.
Achimov suggested that embracing new technologies and collaborating with financial institutions are potential strategies for FINTRAC to uncover suspicious transactions and reduce risks.
In the 2022-2023 financial year, the number of suspicious transactions reached 560,858, showing a slight decrease from the previous year’s 585,853 but a significant increase from the 114,422 reported in 2015-2016.
Notably, approximately 75% of suspicious transactions reported between April and September 2023 came from financial institutions.
Written by Alius Noreika