ClearBank and ThetaRay Collaborate

November 29, 2022

ClearBank and ThetaRay have announced a collaboration in cloud-native anti-money laundering (AML) monitoring.

Through the agreement, ClearBank will transform its AML monitoring operations to a fully cloud-native program with ThetaRay’s Software-as-a-Service (SaaS) SONAR AML solution. The cloud-native SONAR system will provide ClearBank the flexibility to scale and support faster and safer processing of increasing transaction volumes on its platform.

ThetaRay’s SONAR solution is based on a proprietary form of artificial intelligence (AI), artificial intelligence intuition, giving the system the power to recognise anomalies and find unknowns outside of normal behaviour, including completely new typologies. It enables fintechs and banks to implement a risk-based approach to identify truly suspicious activity and create a full picture of customer identities, including across complex, cross-border transaction paths. This allows the rapid discovery of both known and unknown money laundering threats, and up to 99% reduction in false positives compared to rules-based solutions.

ClearBank is one of the first fully regulated cloud-native clearing bank in the UK, operating with more than 200 financial institutions and fintech customers, 13 million accounts, and GBP 3 billion in balances.

Partnering in the fight against money laundering

Transaction monitoring is a key part of the AML process. Government bodies set the thresholds over which a transaction must be checked for AML, but companies can also implement their own monitoring for all transactions as well.

ClearBank and ThetaRay announce a collaboration in cloud-native anti-money laundering (AML) monitoring.

To apply a risk-based approach to AML transaction monitoring, institutions must take appropriate steps to identify and assess the risks of money laundering and terrorist financing for different market segments, intermediaries, and products on an ongoing basis. In line with the concept of a risk-based approach is acknowledgement that the nature and extent of AML/CFT controls will depend on several factors.

Broadly speaking, a risk-based approach requires that financial institutions employ intensive measures to manage risk for clients or scenarios that are deemed higher-risk, while for lower-risk clients or scenarios, and where there is no suspicion of money laundering or terrorist financing, simplified measures may be permitted.

ThetaRay’s recent developments

In April 2022, ThetaRay has integrated Screena’s screening system into its SONAR SaaS tansaction monitoring solution. Screena’s real-time, AI-supported solution uses proprietary algorithms and risk analysis to screen transactions against financial sanctions watchlists. The combined transaction monitoring and integrated screening solution can be deployed within weeks.

Officials from ThetaRay explained that the only way to accurately monitor the financial activities of sanctioned entities without causing pain to ordinary people is by leveraging AI capabilities. The two comapnies are committed to enabling seamless business and flow of currencies while preventing money launderers and sanctioned parties from exploiting banks and payments fintechs for illegal activities.

Earlier that same year, ThetaRay was announcing the availability of its SaaS AML solution, SONAR, in the Microsoft Azure Marketplace. The Azure Marketplace is an online market for buying and selling cloud solutions certified to run on Azure. The Azure Marketplace helps connect companies seeking innovative, cloud-based solutions with partners who have developed solutions that are ready to use.

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