HONG KONG SAR - Media OutReach Newswire - 28 October 2024 – FCC Analytics is proud to announce a Memorandum of Understanding (MOU) with Airstar Bank and livi bank, two pioneering digital banks in Hong Kong, to adopt a groundbreaking federated learning technology for anti-money laundering. This innovative approach allows for enhanced collaboration between banks while preserving data privacy, aligning with the Hong Kong Monetary Authority’s (HKMA) initiative to leverage artificial intelligence for monitoring suspicious activities in the financial sector.
The adoption of federated learning enables these banks to share insights on potential money laundering activities without compromising sensitive customer information. By utilizing decentralized machine learning algorithms, this technology represents a significant breakthrough in the fight against financial crime. This initiative supports the HKMA’s regulatory framework, enhancing the banks’ ability to meet compliance requirements. It strengthens the monitoring process, allowing banks to reduce operational costs associated with traditional anti-money laundering methods. The partnership fosters a collaborative approach to combat financial crime, setting a precedent for future cooperation within the banking sector.
Wallace Chow, Founder and CEO of FCC Analytics, expressed his gratitude, stating, “We extend our heartfelt thanks to Airstar Bank and livi bank for their commitment to this initiative. Our vision is to support banks in combating financial crime by driving a peer-to-peer federated learning network across the Asia Pacific for various collaborative purposes.”
Henry Yu, Chief Compliance Officer of Airstar Bank, emphasized, “This partnership marks a significant step forward in our commitment to combating financial crime. By leveraging federated learning, we can enhance our AML capabilities while maintaining the highest standards of data privacy.”
Integrating this technology will improve the detection of suspicious patterns by facilitating collaboration among banks without the need to share raw data. Sensitive customer information remains secure, as the technology ensures that data does not leave the local servers of the banks. Karen Kwok, Head of Financial Crime Compliance at livi bank, remarked, “The ability to share insights without compromising customer data is revolutionary. This initiative not only strengthens our compliance efforts but also reinforces our dedication to protecting our customers and the integrity of the financial system.”
