Innovation & Benefits

The rapid advancement of technology has led to increasingly sophisticated and unpredictable money laundering activities. Financial institutions are also making significant investments in technology to identify and prevent criminals from exploiting banking systems as channels for money laundering. 

New Challenges in Anti-Money Laundering in the Digital Era

Recently, investigative agencies have tracked financial transactions to dismantle numerous criminal groups specializing in laundering money for illegal gambling apps or fraudulent payment schemes. One of the most notable cases involved the takedown of Billy's transnational money laundering network, which processed up to VND 2 trillion per day in Lam Dong. Another high-profile case was the arrest of a senior female manager involved in a VND 1 trillion fraud scheme affecting over 13,000 victims.

According to experts, money laundering is a process undertaken to conceal the illicit origins of funds obtained through criminal activities. It is considered a derivative crime, as it serves to legitimize unlawfully acquired assets.

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Ms. Vu Thi Le Phuong, Director of Business Solutions at TNTech's Financial - Banking - Insurance Solutions Center, stated, In Vietnam, the increasing volume of international financial transactions, the evolution of technology, and the emergence of new payment methods have posed significant challenges for banks in managing money laundering risks. Criminal tactics have become more sophisticated, leveraging high-tech solutions.

Key challenges faced by banks include the overwhelming volume of transactions requiring monitoring, the complexity of transnational money laundering networks, and the lack of modern technology to detect suspicious transaction patterns.

In this context, technological solutions are becoming increasingly critical in the fight against money laundering.

Anti-money laundering (AML) solutions utilizing advanced technologies such as machine learning and artificial intelligence (AI) enable the analysis of vast historical data sets and the identification of suspicious transaction patterns. These systems employ complex algorithms to detect anomalies in customer transaction histories, Ms. Le Phuong explained.

Security Filter for Anti-Money Laundering

Many global banks and financial institutions have adopted big data analytics software, blockchain technology, and AI to detect unusual transactions and assess transaction risks. Banks are also leveraging online customer authentication technologies to verify user identities quickly and efficiently, minimizing the risk of overlooking money laundering-related information.

In Vietnam, several banks have implemented biometric authentication to verify customer identities and enhance Know Your Customer (KYC) processes. Banks are also engaging in long-term collaborations with domestic and international technology firms to upgrade their anti-money laundering systems, with the aim of strengthening risk management and regulatory compliance capabilities.

For example, NCB has signed an agreement with Diligent Risk Solutions, while VietABank has partnered with TNTech to deploy a new AML software system. 

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According to TNTech representatives, the company has developed its own AML solution, integrating AI and machine learning to enhance the detection of suspicious transactions while reducing false alerts. The solution offers several outstanding advantages, including high customization capabilities, adaptability to evolving domestic and international regulations, high accuracy, and cost-effectiveness.

Notably, TNTech's AML system features an advanced customer risk scoring mechanism based on multiple criteria, such as business type, geographic location, transaction history, and associations with high-risk entities. The system continuously updates risk scores based on the latest information, enabling banks to assess individual customer risks in real time.

With the advancement of technology, TNTech aims to provide banks with innovative and effective AML solutions that maximize the detection and prevention of financial crimes and money laundering while safeguarding the interests of customers and society as a whole, a TNTech representative shared.

Beyond developing products that meet urgent market demands, technology companies like TNTech continuously enhance their solutions by optimizing features and expanding functionalities. This allows banks and financial institutions to swiftly adapt to increasingly sophisticated money laundering schemes and detect and prevent emerging financial crimes.

In today's complex global financial landscape, anti-money laundering has become a top priority for the banking and financial industry. Cutting-edge technology solutions not only help banks comply with legal requirements but also enhance operational efficiency, uphold institutional credibility, and build trust with customers and international partners.