Summary: Financial crimes are a complex legal matter that technology has made easier to investigate while also making it easier for the crimes to be hidden.
Technology is intertwined into every industry, greatly affecting them for the better and for the worse. Cleary Gottlieb Steen and Hamilton partner Lev Dassin has experience leading prosecution teams in high-profile cases involving financial crimes. He explains in a Big Law Business article how technology is “changing the financial crimes playing field.”
The False Claims Act can be especially hard for companies to get a handle on when there are such large amounts of data and information flowing through a company on all levels. Corporations can have a hard time detecting fraudulent activity but predictive analytics are able to analyze large amounts of data to pick out potentially questionable activity.
The enforcement of anti-money laundering statutes and compliance with economic sanctions are affected by the rapid expansion of technologies that lead to an increase in risks to how money is laundered and sanctioned internationally. Multinational companies that are aware of these risks use technology to manage the risks. Technology has come a long way to be able to detect potential money laundering and sanctions violations.
Many wonder how artificial intelligence will play a role in the investigations of financial crimes. So far artificial intelligence is used to identify and escalate the response to questionable conduct as well as investigate the conduct once it has occurred. For example, artificial intelligence identifies communications and data that show misconduct. As technology advances, its ability to pinpoint misconduct and potentially problematic matters will sharpen.
Deciding how to use artificial intelligence is something every company must carefully consider when looking at legal and factual issues and the types of data in question. When artificial intelligence is used correctly, it can be a major cost saving and time-saving venture.
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To learn more about the advancements of technology in the legal world, read these articles:
- Blockchain Technology Catching on in Legal Industry
- Technology Continues Changing the Legal Industry
- Use of Artificial Intelligence in Legal Industry Can Change Billing
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