Because of the volume and value of transactions banks are at risk of criminal activity when making or receiving payments on behalf of their customers.


Because money is being moved, fraudsters see this as an opportunity to initiate or intercept payments.

We have discussed some of the fraud risk and the management processes and technology in previous sections.

Banks are increasingly using artificial intelligence and machine learning technology to identify transaction patterns and fraud hot spots in the billions of transactions that are being made each year.

Anti-money laundering

Because criminals must use payment systems, banks are at risk of money-laundering, which is the process that criminals use to turn the proceeds of their crimes into legitimate funds.

Where banks are found to have breached anti-money laundering rules, regulators will levy heavy fines that may also result in bank employees being jailed if found to be complicit in the breach.

Banks have procedures and processes to flag and investigate suspicious activity and are increasingly using machine learning and artificial intelligence to spot criminal activity in the millions of transactions that they process each year.