United American Bank (UAB) has selected Verafin, a provider of compliance, anti-money laundering (AML) and fraud detection software, to meet compliance and fraud detection needs.
Verafin’s second-generation solution will help UAB detect suspicious activity and mitigate financial crime, while ensuring compliance with industry regulations, such as the Bank Secrecy Act (BSA).
Verafin will enable the bank to combine its AML and fraud detection efforts, which helps simplify BSA processes and reduce duplication investigations and false positive alerts.
Unlike traditional rules-based systems, Verafin uses a behavior-based approach that relies on artificial intelligence to search out unusual behaviors. This approach analyzes transactions and looks for patterns of behavior that are unusual for the customer or are indicative of money laundering.
This analysis creates a risk score for each customer and when the risk exceeds a certain level, an alert is generated. The system provides all the relevant transactions for the customer as well as the specific pieces of evidence that lead to the alert.
Joe Simoni, vice president and BSA officer at UAB, said: “As we continue to grow, we need a comprehensive system to detect potential incidents of fraud and money laundering. We had been looking at automated systems since 2006 but couldn’t find the right fit. Verafin piqued our interest when we learned that it had been endorsed by the California Bankers Association. Its unique technology, as well as outstanding service and support sealed the deal.
“Verafin’s second-generation solution is clearly a cut above the offerings from other automated software companies. It’s like having another person working with you. Verafin will free up time for me to concentrate on other tasks and take on more projects that I didn’t have time for before.”