Grant: CCI Applied Research and Development Grants

Clear View Systems (CVS) has been developing software solutions for small to medium size financial businesses, including a ‘Transaction monitoring system’ that can detect and monitor transactions that follow a certain pattern and bring them to the attention of a compliance officer (human) for validation and approval. The current Transaction monitoring system has been developed as a ‘Rule-based Engine’ (RBE). The RBE is a powerful and flexible engine that can detect transactions that fall within the criteria defined by a set of rules. It can be programmed to detect specific patterns that must be reported (to the government) such as Large Cash Transactions or Electronic Fund Transfer. Since every country has its own Anti-Money Laundering (AML) Compliance rules and regulations, each company has its own specific version of the procedures and guidelines. As a result, each company requires a customized version of the rules, and regulations change regularly. Companies have to adhere to the new laws, and the cycle creates a continuous demand for modifying the rules to match the current regulation. The main goal of the project is to develop an AI/ML-based solution that can be used by financial entities to detect suspicious or reportable transaction patterns of their clients. The project’s focus and scope are for Canadian entities and are based on the regulatory requirements of the Financial Transactions and Reports Analysis Center of Canada (FINTRAC). The AI/ML-based solution will be developed to work in hand with the RBE and will reduce the complexity of having hundreds of rules for each client and trying to maintain the rules with ever-changing AML requirements. The AI/ML tool will not only learn from the RBE but also from the Compliance Officer(s) who manually resolve every case that is raised. With the successful completion of this project, CVS has the advantage of being recognized in the market as one of the leaders of software and automation systems for small to midsize financial companies. This reputation can help the company market its newer enterprise-level product to its current and future customers. In addition, The Canadian market is in need of robust and trustworthy technology developed in Canada that can 100% adhere to Canadian laws and regulations. This project will lead to regulated Canadian businesses not looking for this technology outside of Canada.