Sachin Dev Duggal’s Anti-Money Laundering Tool is Way More Effective with Blockchain Implementation

Sachin Dev Duggal says “The development of the anti-money laundering (AML) solution marks the start of a new era in the fight against deception”. Anti-money laundering solutions employ technology to assist legal and financial organizations in meeting legal criteria imposed by financial authorities to detect and prevent money laundering.

Sachin Duggal suggests effective implementation of blockchain-based AML suite that uses smart contracts. He stated “The Smart Contracts will be able to automate the process of AML requirements for fraud detection and money laundering by using inbuilt algorithms. This technique might automatically prohibit or red flag any questionable transactions by programming in a set of conditions, such as the necessity for verified ID”.

“Without needing to pay large teams of auditors to verify the transactions and flag questionable behavior, it would be possible to obtain supervision over all digital transactions performed by participating financial institutions” says Sachin Dev Duggal. Governments and law enforcement agencies would be able to construct a financial system with anti-money laundering legislation, which would require all financial institutions and cryptocurrencies to support such a system to detect money laundering.

Each participating financial institution or treasury would operate as a node on the blockchain in such money laundering operations. Whenever a transaction was made, the network inspected it and may flag it as suspicious, requiring money laundering processes. During onboarding, AI can assist with ID and verification (ID&V). When creating a new account, traditional models required a person to visit a bank to verify their identity. A consumer may use AI to record a selfie video and bring up their passport, which the system can instantaneously verify.

Bitcoin's anonymous wallets make it impossible to track who started or received a payment, thus cryptocurrency isn't always popular in anti-money laundering circles. However, new cryptocurrency laws set to take effect in the United Kingdom in 2021, together with the 5th Anti-Money Laundering Directive (5AMLD), should diminish anonymity and improve end-to-end payment supervision.

The vision of Sachin Duggal towards implementing Anti-Money Laundering tool in financial sectors with the AI can back up the security at ease. It can continuously monitor client activity by learning regular customer behavior, quickly spot unexpected behavior and transactions, and even spot discrepancies that the human eye misses.

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