In a recent government meeting, discussions highlighted the alarming scale of illicit financial activities, with an estimated $3.1 trillion flowing through the global financial system in 2023. This figure underscores the urgency of addressing financial crime, as losses from fraud alone reached $485.6 billion last year.

Zaka, a representative from Nasdaq, detailed the company's efforts to combat these issues through advanced technology. Nasdaq's Verifin product provides anti-financial crime (AFC) surveillance software to over 2,000 institutions, ranging from credit unions to major banks. This software utilizes machine learning to enhance the detection of suspicious activities by analyzing data from various sources, including internal systems and online information. Zaka emphasized that artificial intelligence plays a crucial role in identifying connections between individuals, allowing compliance departments to prioritize the most significant cases and reduce false positives.

However, Zaka also noted a growing challenge: as financial institutions adopt new technologies to combat crime, criminals are simultaneously leveraging these advancements to develop more sophisticated strategies. To stay ahead, Nasdaq is collaborating with clients to refine their use cases and improve the effectiveness of their surveillance systems.

Zaka raised two critical points for consideration: the need for a stronger feedback loop between financial institutions and government agencies regarding the usefulness of suspicious activity reports, and the necessity for clearer regulatory expectations. These insights reflect a broader call for enhanced cooperation and communication in the fight against financial crime, as stakeholders seek to navigate an increasingly complex landscape.