Enhancing AML Monitoring and Fraud Detection for e-Transfers

Situation

A digital-payments-focused Canadian bank that helps entrepreneurs grow and scale requested help with monitoring fraudulent activity across its 180 million annual Interac e-Transfers, focusing on AML to comply with FINTRAC regulations.

Challenge

The data available was highly limited. Roughly 500,000 transactions were processed daily with only manual monitoring in place. Beneficiary data was not aggregated across the platform, making it impossible to track money laundering activity in line with regulatory requirements.

Action

An end-to-end fraud and AML monitoring capability was delivered, replacing manual oversight with automated detection at scale:

• Beneficiaries were aggregated based on email and/or phone number.
• Fraud scoring was implemented based on patterns and AI algorithms.
• Reporting on transactions, fraud scores, and AML scoring was enabled.

Result

The implementation resulted in greater visibility, detection of money laundering, and satisfaction of regulatory reporting obligations.