What is correspondent banking AML risk?
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In order to understand what correspondent banking AML risk is, let’s break it down.
What are correspondent banks?
The definition of correspondent banking is: Banks in a country that are set up to provide services for another bank or financial institution in a foreign country. The services provided by a correspondent bank include money transfers, currency exchange, trade documentation and business transactions. Typically, in a correspondent banking relation, two banks in two different countries enter into an agreement to open a correspondent account (Nostro or Vostro account), which enables a domestic bank to make payments or do money transfers in local currency on behalf of a foreign bank. An example of a correspondent banking transaction is given below.
- A corporate customer of a bank in one country wants to pay for products purchased from a foreign supplier.
- The customer approaches its domestic bank and instructs to make the payment (in foreign currency).
- The domestic bank determines the local currency value of the foreign products purchased and deducts the same from its customer’s account.
- The domestic bank then instructs its correspondent bank in the supplier’s country to pay the supplier in the local currency from the domestic bank’s correspondent account.
Correspondent banks are most likely to be used by domestic banks to service transactions that either originate or are completed in foreign countries. Domestic banks generally use correspondent banks to gain access to foreign financial markets and to serve international clients without having to open branches abroad.
What is an example of this?
For example, let’s say you live in the U.S. and go to your local bank to wire funds to a friend in Spain. An employee at the bank simply searches the SWIFT network to find a correspondent bank that has an agreement in place with the financial institution in Spain. Then, the correspondent bank facilitates the transaction.
Money laundering through correspondent banking
Money laundering, the act of concealing the illegal nature of ill-gotten money, is an international problem. According to the UNODC, the amount of money being laundered across the globe every year is equivalent to 2-5% of global GDP, or USD800 billion – USD2 trillion. Financial crime impacts the economies and communities of all countries, irrespective of their financial health and stage of development.
Money laundering has a global nature as many criminals make use of international transaction options in the layering or integration stages. Correspondent banks play an important role in facilitating cross-border money laundering transactions. Criminals make use of the services of correspondent banks without proper anti-money laundering (AML) controls to pass on their criminal proceeds to jurisdictions where they can use them in a hassle-free manner. Here, we are trying to understand correspondent banking AML risk in detail and national and international regulations to mitigate correspondent banking AML risk.
Correspondent banking AML risk
Correspondent banking is an essential part of the global payment system and international trade depends largely on it. However, these facilities are often abused to facilitate money laundering and terrorist financing. Mitigation of correspondent banking AML is often a difficult task as the domestic bank carrying out the transaction on behalf of a foreign bank has to rely on the foreign bank’s abilities in identifying the customer, determining the real owners, and monitoring correspondent banking transactions for risks. Often, a foreign bank’s AML compliance programs may not be sufficient to meet the AML requirements of a domestic bank.
There have been reports that foreign correspondent accounts have been used by drug traffickers and other bad actors to launder money. Further, shell companies have often been used in the layering process to hide the actual ownership of accounts at foreign correspondent financial institutions. Due to a large amount of funds, many transactions, many AML fraud schemes, and a domestic bank’s unfamiliarity with the foreign correspondent bank’s customers, it is easy for criminals to conceal the source and use of ill-gotten funds. Therefore, governments in a correspondent banking relationship must ensure complementary and robust anti-money laundering / counter-terrorist financing (AML/CTF) measures to safeguard their financial systems.
The KYC challenges for correspondent banks
Know-your-customer (KYC) due diligence is an essential element of banking, including correspondent banking. Banks that enter into correspondent banking relationships need to be sure that banks in the chain have correct controls and governance in place, and that their KYC, AML and other due diligence procedures are strong.
Customer due diligence requires that correspondent banks identify and understand their respondents’ banking activities and know if the respondents maintain additional correspondent banking relationships.
FATF guidelines on correspondent banking AML risk
FATF, the international AML/CFT watchdog, recommended various measures to counter money laundering via correspondent banking. FATF noted that “financial institutions have increasingly decided to avoid, rather than to manage, possible money laundering or terrorist financing risks, by terminating business relationships with entire regions or classes of customers”. This so-called ‘de-risking’ practice “can result in financial exclusion, less transparency and greater exposure to money laundering and terrorist financing risks”, according to the watchdog.
FATF advocates the application of the risk-based approach to correspondent banking relationships. It recommended the following measures to counter money laundering via correspondent banking.
- Due diligence on the respondent institution: FATF recommends additional due diligence measures to be applied to cross-border correspondent banking relationships. Such additional measures are appropriate because cross-border correspondent banking relationships are seen to be inherently higher risk than domestic correspondent customer relationships.
- Developing an understanding of the respondent institution’s business: The correspondent institution should also gather sufficient information to understand the nature of the respondent institution’s business in line with the risks identified.
- Verifying respondent institution’s information and assessing/documenting higher risks: When establishing new correspondent banking relationships, the correspondent institution may obtain information directly from the respondent institution. However, this information needs to be verified with independent sources of information such as corporate registries, registries maintained by competent authorities on the creation or licensing of respondent institutions, and registries of beneficial ownership.
- Ongoing due diligence on the respondent institution: Correspondent institutions are required to conduct ongoing due diligence of the correspondent banking relationship, including periodical reviews of the CDD information on the respondent institution.
- Ongoing transaction monitoring: Ongoing AML monitoring of the correspondent banking account activity is needed for compliance with targeted financial sanctions and to detect any changes in the respondent institution’s transaction pattern that may indicate unusual activity, or any potential deviations from the correspondent relationship.
- Request for information about transactions: Where the monitoring system of the correspondent institution flags a transaction, which could signal unusual activity, the correspondent institution should have internal processes to further review the activity, which may involve requesting transaction information of the respondent institution in order to clarify the situation and possibly clear the alert.
- Clear terms governing the correspondent banking relationship: Correspondent institutions can manage their risks more effectively from the outset by entering into a written agreement with the respondent institution before correspondent services are provided.
- Ongoing communication and dialogue: It is important for correspondent institutions to maintain an ongoing and open dialogue with the respondent institution(s) including helping them understand the correspondent’s AML/CFT policy and expectations, and when needed, engaging with them to improve their AML/CFT controls and processes.
- Adjusting the mitigation measures to the evolution of risks: The level and nature of AML/CFT risk may fluctuate over the course of any relationship and adjustments should be made in the correspondent institution’s risk management strategy to reflect these changes.
While correspondent banking is important for the smooth functioning of international trade and transactions, both respondent banks and correspondent banks should have strong AML/CFT compliance programs to mitigate risks. The use of efficient and effective anti-money laundering software is crucial for the success of any AML/CFT compliance program.
The Tookitaki Anti-Money Laundering Suite, an end-to-end, AI-powered AML/CFT solution, is helping financial institutions comply with many regional and international AML compliance regulations and build scalable and sustainable compliance programs that effectively counter AML risk, including correspondent banking AML risk.
To know more about our AML compliance solution and book a demo, please contact us.
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Stopping Fraud in Its Tracks: Transaction Fraud Prevention in Taiwan’s Digital Age
Fraud moves fast and in Taiwan’s digital-first economy, transaction fraud prevention has become the frontline of trust.
With payment volumes soaring across e-wallets, online banking, and instant transfers, the fight against fraud is no longer about catching criminals after the fact. It’s about detecting and stopping them in real time. Advanced platforms such as Tookitaki’s FinCense are redefining how financial institutions in Taiwan and beyond approach this challenge — blending AI, collaboration, and regulatory alignment to build smarter defences.
Taiwan’s Digital Finance Boom and the Fraud Challenge
Taiwan has become one of Asia’s leaders in digital payments, with e-wallet adoption rising sharply and cross-border transactions powering e-commerce. But speed and convenience come with vulnerabilities:
- Account Takeover (ATO): Fraudsters gain access to accounts via phishing or malware.
- Money Mules: Recruited individuals move illicit funds through small-value transactions.
- Synthetic Identities: Fake profiles slip past onboarding checks to exploit payment rails.
Regulators such as the Financial Supervisory Commission (FSC) have ramped up requirements, urging banks and payment firms to adopt risk-based monitoring. But compliance alone isn’t enough — prevention requires smarter tools and adaptive intelligence, the kind being pioneered by Tookitaki’s AI-powered compliance platform.
What Is Transaction Fraud Prevention?
At its core, transaction fraud prevention means identifying, analysing, and blocking suspicious payments before they can be completed. Unlike post-event investigations, prevention focuses on:
- Real-Time Detection – Flagging anomalies instantly.
- Behavioural Analytics – Profiling normal user patterns to spot deviations.
- Risk Scoring – Assigning risk levels to every transaction.
- Adaptive Learning – Using AI to refine rules as fraud evolves.
For Taiwan, where instant payments via the Financial Information Service Co. (FISC) platform are mainstream, real-time fraud prevention is a necessity. Platforms like FinCense help banks achieve this by combining speed with precision.
Key Fraud Risks in Taiwan
1. Account Takeover via Phishing
Taiwanese banks report rising cases of SMS phishing (“smishing”), where fraudsters impersonate institutions. Once accounts are breached, rapid fund transfers are executed before victims react.
2. Online Investment Scams
Cross-border scam syndicates target Taiwanese consumers with fraudulent investment schemes, funnelling proceeds through mule networks.
3. Social Engineering
“Pig butchering” scams, romance fraud, and fake job offers have become prominent, with victims manipulated into initiating fraudulent transfers themselves.
4. Merchant Fraud
E-commerce sellers set up fake storefronts, collect payments, and disappear, leaving banks to handle disputes and reputational risks.
Strategies for Effective Transaction Fraud Prevention
Real-Time Monitoring
Fraud can unfold in seconds. Systems must analyse every transaction as it occurs, applying machine learning to flag suspicious transfers instantly. Tookitaki’s FinCense does this by ingesting real-time data streams and applying dynamic thresholds that adapt as fraud tactics change.
AI-Driven Risk Modelling
Instead of static rules, AI models learn from both fraud attempts and genuine behaviour. For example, FinCense leverages federated learning from a global network of institutions, enabling it to detect anomalies like unusual device fingerprints or abnormal transaction velocity — even when fraudsters attempt never-before-seen tactics.
Cross-Institution Collaboration
Fraudsters rarely confine themselves to one bank. Taiwan’s industry can strengthen defences by sharing red flags across institutions. Through the AFC Ecosystem, Tookitaki empowers banks and fintechs to access shared typologies and indicators, helping the industry act collectively against emerging fraud schemes.
Regulatory Alignment
The FSC requires strict fraud monitoring standards. Tookitaki’s compliance solutions are designed with explainable AI and governance frameworks, aligning directly with regulatory expectations while maintaining operational efficiency.
Customer Awareness
Technology alone isn’t enough. Banks should run consumer education campaigns to help customers spot phishing attempts and suspicious investment offers. FinCense complements this by reducing false positives, ensuring customers are not unnecessarily disrupted while genuine fraud attempts are intercepted.
Transaction Fraud Prevention in Practice
Case Example:
A Taiwanese bank detected an unusual pattern where multiple accounts began transferring small sums to the same overseas merchant. Using behavioural analytics powered by AI, the system flagged it as mule activity. Within minutes, the institution froze accounts, reported to the FSC, and prevented further losses.
Solutions like FinCense allow this type of proactive monitoring at scale, reducing detection lag and limiting potential reputational damage.
How Technology Is Raising the Bar
Transaction fraud prevention is no longer just about blacklists or simple thresholds. Cutting-edge solutions now combine:
- Machine Learning Models trained on fraud typologies
- Federated Intelligence Sharing across institutions to learn from global red flags
- Explainable AI (XAI) to ensure transparency in decisions
- Automated Investigation Tools to reduce false positives and improve efficiency
Tookitaki’s FinCense unites these capabilities into a single compliance platform — enabling financial institutions in Taiwan to monitor transactions in real time, adapt to evolving risks, and demonstrate clear accountability to regulators.
Why Transaction Fraud Prevention Matters for Taiwan’s Reputation
Taiwan’s financial system is a trusted hub in Asia. Yet with global watchdogs like FATF scrutinising AML/CFT effectiveness, a weak approach to fraud prevention could tarnish the country’s standing.
Robust prevention not only protects banks and customers — it safeguards Taiwan’s role as a secure, innovation-driven financial market. Tookitaki’s role as the “Trust Layer to fight financial crime” helps institutions balance growth and security, ensuring trust remains central to Taiwan’s digital finance journey.
Conclusion: Building Smarter Defences for Tomorrow
Fraudsters are fast, but Taiwan’s financial industry can be faster. By investing in transaction fraud prevention powered by AI, data collaboration, and regulatory alignment, banks and payment firms can build a financial system rooted in trust.
With advanced platforms like Tookitaki’s FinCense, institutions can move beyond reactive defence and adopt proactive, intelligent, and collective prevention strategies. Taiwan now has the opportunity to set the benchmark for Asia — proving that convenience and security can go hand in hand.
Chasing Zero Fraud: Finding the Best Anti-Fraud Solution for Australia
Fraudsters are getting smarter — but the best anti-fraud solutions are evolving even faster.
Fraud in Australia is no longer just about stolen credit cards or phishing emails. Today, fraudsters use AI deepfakes, synthetic identities, and mule networks to move billions through legitimate institutions. Scamwatch reports that Australians lost over AUD 3 billion in 2024, and regulators are tightening expectations. In this climate, choosing the best anti-fraud solution isn’t just an IT decision — it’s a strategic imperative.
Why Fraud Prevention Has Become Business-Critical in Australia
1. Instant Payment Risks
The New Payments Platform (NPP) has made payments faster, but it also allows criminals to launder money in seconds.
2. Social Engineering & Scam Surge
Romance scams, impersonation fraud, and investment scams are rising sharply. Many involve victims authorising payments themselves — a challenge for traditional detection systems.
3. Regulatory Pressure
AUSTRAC and ASIC expect financial institutions to adopt proactive fraud prevention. Weak controls can lead to fines, reputational loss, and customer churn.
4. Consumer Trust
Australians expect safe, frictionless digital experiences. A single fraud incident can erode customer loyalty.
What Defines the Best Anti-Fraud Solution?
1. Real-Time Fraud Detection
The solution must monitor and analyse transactions instantly, with no batch delays.
- Velocity monitoring
- Device and IP fingerprinting
- Behavioural biometrics
- Pattern recognition
2. AI and Machine Learning
The best anti-fraud systems use AI to adapt to new typologies:
- Spot anomalies that rules miss
- Reduce false positives
- Continuously improve detection accuracy
3. Multi-Channel Protection
Covers fraud across:
- Bank transfers
- Card payments
- E-wallets and digital wallets
- Remittances and cross-border corridors
- Crypto exchanges
4. End-to-End Case Management
Integrated workflows that allow fraud teams to investigate, resolve, and report within the same system.
5. Regulatory Alignment
Supports AUSTRAC compliance with audit trails, suspicious matter reporting, and explainability.
Use Cases for Anti-Fraud Solutions in Australia
- Account Takeover (ATO): Detects unusual login + transfer behaviour.
- Payroll Fraud: Flags sudden beneficiary changes in salary disbursement files.
- Romance & Investment Scams: Detects unusual transfer chains to new or overseas accounts.
- Card-Not-Present Fraud: Blocks suspicious e-commerce transactions.
- Crypto Laundering: Identifies fiat-to-crypto activity linked to high-risk wallets.
Red Flags the Best Anti-Fraud Solution Should Catch
- Large transfers to newly added beneficiaries
- Multiple small transactions in rapid succession (smurfing)
- Login from a new device/IP followed by immediate transfers
- Customers suddenly transacting with high-risk jurisdictions
- Beneficiary accounts linked to mule networks
How to Choose the Best Anti-Fraud Solution in Australia
Key questions to ask:
- Can it handle real-time detection across all channels?
- Does it integrate seamlessly with your AML systems?
- Is it powered by adaptive AI that learns from evolving fraud tactics?
- How well does it reduce false positives?
- Does it meet AUSTRAC’s compliance requirements?
- Does it come with local expertise and support?
Spotlight: Tookitaki’s FinCense as the Best Anti-Fraud Solution
Among global offerings, FinCense is recognised as one of the best anti-fraud solutions for Australian institutions.
- Agentic AI detection for real-time fraud monitoring across banking, payments, and remittances.
- Federated learning from the AFC Ecosystem, bringing in global crime typologies and real-world scenarios.
- FinMate AI copilot helps investigators close cases faster with summarised alerts and recommendations.
- Cross-channel visibility covering transactions from cards to crypto.
- Regulator-ready transparency with explainable AI and complete audit trails.
FinCense not only detects fraud — it prevents it by continuously learning and adapting to new scam typologies.
Conclusion: Prevention = Protection = Trust
In Australia’s high-speed financial landscape, the best anti-fraud solution is the one that balances real-time detection, adaptive intelligence, and seamless compliance. It’s not just about stopping fraud — it’s about building trust and future-proofing your institution.
Pro tip: Don’t just ask if a solution can detect today’s fraud. Ask if it can evolve with tomorrow’s scams.
Malaysia’s Compliance Edge: Why an Industry-Leading AML Solution Is Now Essential
Financial crime is moving faster than ever — and Malaysia needs an AML solution that can move faster still.
The Rising Stakes in Malaysia’s Fight Against Financial Crime
In Malaysia, the financial sector is at a crossroads. With rapid digitalisation, the boom in fintech adoption, and cross-border flows surging, financial crime has found new entry points. Bank Negara Malaysia (BNM) has been firm in its stance: compliance is not optional, and institutions that fail to meet evolving standards face reputational and financial fallout.
At the same time, fraudsters are becoming more sophisticated. From money mule networks exploiting young workers and students to investment scams powered by social engineering and deepfakes, Malaysia is seeing threats that transcend borders.
Against this backdrop, the demand is clear: financial institutions need an industry-leading AML solution that not only meets regulatory expectations but also builds consumer trust in a fast-changing market.
Why “Industry Leading” Is More Than a Buzzword
Every vendor claims to offer the “best” AML software, but in practice, very few solutions rise to the level of being industry leading. In the Malaysian context, where financial institutions must juggle FATF recommendations, BNM guidelines, and ASEAN cross-border risks, the definition of “industry leading” is clear.
An AML solution in Malaysia today must be:
- AI-driven and adaptive — able to evolve with new money laundering and fraud typologies.
- Regulator-aligned — transparent, explainable, and in line with AI governance principles.
- Comprehensive — covering both AML and fraud in real-time, across multiple payment channels.
- Scalable — capable of supporting banks and fintechs with diverse customer bases and transaction volumes.
- Collaborative — leveraging intelligence beyond siloed data to detect emerging risks faster.
Anything less leaves financial institutions vulnerable.
The Challenge with Legacy AML Systems
Many Malaysian banks and fintechs still rely on legacy transaction monitoring systems. While these systems may tick the compliance box, they struggle with modern threats. The common pain points include:
- High false positives — compliance teams are overwhelmed with noise instead of meaningful alerts.
- Static rule sets — traditional systems cannot keep pace with the speed of criminal innovation.
- Limited explainability — leaving compliance officers unable to justify decisions to regulators.
- Fragmentation — siloed systems across AML and fraud prevention create blind spots in detection.
The result? Compliance teams are overstretched, risks are missed, and customer trust is eroded.
Tookitaki’s FinCense: Malaysia’s Industry-Leading AML Solution
This is where Tookitaki’s FinCense stands apart — not just as another AML system, but as the Trust Layer to fight financial crime.
FinCense is purpose-built to help financial institutions in Malaysia and beyond move from reactive compliance to proactive prevention. Here’s why it leads the industry:
1. Agentic AI Workflows
FinCense harnesses Agentic AI, a next-generation compliance framework where AI agents don’t just analyse data but take proactive actions across the investigation lifecycle. This enables:
- Automated alert triage
- Smarter case management
- Real-time recommendations for compliance officers
The outcome: compliance teams spend less time firefighting and more time making strategic decisions.
2. Federated Learning: Collective Intelligence at Scale
Unlike siloed systems, FinCense taps into a federated learning model through the AFC Ecosystem — a community-driven network of financial institutions, regulators, and compliance experts. This allows Malaysian banks to detect threats that may have first emerged in other ASEAN markets, giving them a head start against syndicates.
3. Explainable, Regulator-Aligned AI
Trust in compliance technology hinges on explainability. FinCense is designed to be fully explainable and auditable, aligned with frameworks like Singapore’s AI Verify. For Malaysian banks, this ensures regulators can clearly understand the basis for alerts, reducing friction and enhancing oversight.
4. End-to-End Coverage: AML + Fraud
FinCense goes beyond AML, offering integrated coverage across:
- Transaction monitoring
- Name screening
- Fraud detection
- Smart disposition and narration tools for investigations
This eliminates the need for multiple systems and ensures compliance teams have a single view of risk.
5. ASEAN Market Fit
FinCense is not a one-size-fits-all solution. Its scenarios and typologies are tailored to the realities of ASEAN markets, including Malaysia’s unique mix of cross-border remittances, e-wallet adoption, and high cash usage. This localisation ensures higher detection accuracy and relevance.
What This Means for Malaysian Banks and Fintechs
Adopting an industry-leading AML solution like FinCense translates to tangible benefits:
- Reduced Compliance Costs — through automation and lower false positives.
- Faster, More Accurate Detection — stopping illicit funds before they can be layered or withdrawn.
- Regulatory Confidence — meeting BNM and FATF expectations with explainable, auditable AI.
- Stronger Customer Trust — safeguarding against scams and building confidence in digital finance.
With Malaysia pushing to strengthen its financial system and attract international investment, trust is the new currency. A compliance framework that prevents financial crime effectively is no longer optional — it is foundational.
The Road Ahead: Building Malaysia’s Trust Layer
Financial crime is only going to get smarter. With the rise of instant payments, deepfake-driven scams, and cross-border mule networks, Malaysia’s financial sector needs a solution that evolves just as quickly.
Tookitaki’s FinCense is more than software — it is the Trust Layer that empowers banks and fintechs to detect risks early, protect customers, and stay a step ahead of regulators and criminals alike.
For Malaysian financial institutions, the choice is clear: staying competitive in the region means adopting an industry-leading AML solution that can deliver speed, precision, and transparency at scale.
Stopping Fraud in Its Tracks: Transaction Fraud Prevention in Taiwan’s Digital Age
Fraud moves fast and in Taiwan’s digital-first economy, transaction fraud prevention has become the frontline of trust.
With payment volumes soaring across e-wallets, online banking, and instant transfers, the fight against fraud is no longer about catching criminals after the fact. It’s about detecting and stopping them in real time. Advanced platforms such as Tookitaki’s FinCense are redefining how financial institutions in Taiwan and beyond approach this challenge — blending AI, collaboration, and regulatory alignment to build smarter defences.
Taiwan’s Digital Finance Boom and the Fraud Challenge
Taiwan has become one of Asia’s leaders in digital payments, with e-wallet adoption rising sharply and cross-border transactions powering e-commerce. But speed and convenience come with vulnerabilities:
- Account Takeover (ATO): Fraudsters gain access to accounts via phishing or malware.
- Money Mules: Recruited individuals move illicit funds through small-value transactions.
- Synthetic Identities: Fake profiles slip past onboarding checks to exploit payment rails.
Regulators such as the Financial Supervisory Commission (FSC) have ramped up requirements, urging banks and payment firms to adopt risk-based monitoring. But compliance alone isn’t enough — prevention requires smarter tools and adaptive intelligence, the kind being pioneered by Tookitaki’s AI-powered compliance platform.
What Is Transaction Fraud Prevention?
At its core, transaction fraud prevention means identifying, analysing, and blocking suspicious payments before they can be completed. Unlike post-event investigations, prevention focuses on:
- Real-Time Detection – Flagging anomalies instantly.
- Behavioural Analytics – Profiling normal user patterns to spot deviations.
- Risk Scoring – Assigning risk levels to every transaction.
- Adaptive Learning – Using AI to refine rules as fraud evolves.
For Taiwan, where instant payments via the Financial Information Service Co. (FISC) platform are mainstream, real-time fraud prevention is a necessity. Platforms like FinCense help banks achieve this by combining speed with precision.
Key Fraud Risks in Taiwan
1. Account Takeover via Phishing
Taiwanese banks report rising cases of SMS phishing (“smishing”), where fraudsters impersonate institutions. Once accounts are breached, rapid fund transfers are executed before victims react.
2. Online Investment Scams
Cross-border scam syndicates target Taiwanese consumers with fraudulent investment schemes, funnelling proceeds through mule networks.
3. Social Engineering
“Pig butchering” scams, romance fraud, and fake job offers have become prominent, with victims manipulated into initiating fraudulent transfers themselves.
4. Merchant Fraud
E-commerce sellers set up fake storefronts, collect payments, and disappear, leaving banks to handle disputes and reputational risks.
Strategies for Effective Transaction Fraud Prevention
Real-Time Monitoring
Fraud can unfold in seconds. Systems must analyse every transaction as it occurs, applying machine learning to flag suspicious transfers instantly. Tookitaki’s FinCense does this by ingesting real-time data streams and applying dynamic thresholds that adapt as fraud tactics change.
AI-Driven Risk Modelling
Instead of static rules, AI models learn from both fraud attempts and genuine behaviour. For example, FinCense leverages federated learning from a global network of institutions, enabling it to detect anomalies like unusual device fingerprints or abnormal transaction velocity — even when fraudsters attempt never-before-seen tactics.
Cross-Institution Collaboration
Fraudsters rarely confine themselves to one bank. Taiwan’s industry can strengthen defences by sharing red flags across institutions. Through the AFC Ecosystem, Tookitaki empowers banks and fintechs to access shared typologies and indicators, helping the industry act collectively against emerging fraud schemes.
Regulatory Alignment
The FSC requires strict fraud monitoring standards. Tookitaki’s compliance solutions are designed with explainable AI and governance frameworks, aligning directly with regulatory expectations while maintaining operational efficiency.
Customer Awareness
Technology alone isn’t enough. Banks should run consumer education campaigns to help customers spot phishing attempts and suspicious investment offers. FinCense complements this by reducing false positives, ensuring customers are not unnecessarily disrupted while genuine fraud attempts are intercepted.
Transaction Fraud Prevention in Practice
Case Example:
A Taiwanese bank detected an unusual pattern where multiple accounts began transferring small sums to the same overseas merchant. Using behavioural analytics powered by AI, the system flagged it as mule activity. Within minutes, the institution froze accounts, reported to the FSC, and prevented further losses.
Solutions like FinCense allow this type of proactive monitoring at scale, reducing detection lag and limiting potential reputational damage.
How Technology Is Raising the Bar
Transaction fraud prevention is no longer just about blacklists or simple thresholds. Cutting-edge solutions now combine:
- Machine Learning Models trained on fraud typologies
- Federated Intelligence Sharing across institutions to learn from global red flags
- Explainable AI (XAI) to ensure transparency in decisions
- Automated Investigation Tools to reduce false positives and improve efficiency
Tookitaki’s FinCense unites these capabilities into a single compliance platform — enabling financial institutions in Taiwan to monitor transactions in real time, adapt to evolving risks, and demonstrate clear accountability to regulators.
Why Transaction Fraud Prevention Matters for Taiwan’s Reputation
Taiwan’s financial system is a trusted hub in Asia. Yet with global watchdogs like FATF scrutinising AML/CFT effectiveness, a weak approach to fraud prevention could tarnish the country’s standing.
Robust prevention not only protects banks and customers — it safeguards Taiwan’s role as a secure, innovation-driven financial market. Tookitaki’s role as the “Trust Layer to fight financial crime” helps institutions balance growth and security, ensuring trust remains central to Taiwan’s digital finance journey.
Conclusion: Building Smarter Defences for Tomorrow
Fraudsters are fast, but Taiwan’s financial industry can be faster. By investing in transaction fraud prevention powered by AI, data collaboration, and regulatory alignment, banks and payment firms can build a financial system rooted in trust.
With advanced platforms like Tookitaki’s FinCense, institutions can move beyond reactive defence and adopt proactive, intelligent, and collective prevention strategies. Taiwan now has the opportunity to set the benchmark for Asia — proving that convenience and security can go hand in hand.
Chasing Zero Fraud: Finding the Best Anti-Fraud Solution for Australia
Fraudsters are getting smarter — but the best anti-fraud solutions are evolving even faster.
Fraud in Australia is no longer just about stolen credit cards or phishing emails. Today, fraudsters use AI deepfakes, synthetic identities, and mule networks to move billions through legitimate institutions. Scamwatch reports that Australians lost over AUD 3 billion in 2024, and regulators are tightening expectations. In this climate, choosing the best anti-fraud solution isn’t just an IT decision — it’s a strategic imperative.
Why Fraud Prevention Has Become Business-Critical in Australia
1. Instant Payment Risks
The New Payments Platform (NPP) has made payments faster, but it also allows criminals to launder money in seconds.
2. Social Engineering & Scam Surge
Romance scams, impersonation fraud, and investment scams are rising sharply. Many involve victims authorising payments themselves — a challenge for traditional detection systems.
3. Regulatory Pressure
AUSTRAC and ASIC expect financial institutions to adopt proactive fraud prevention. Weak controls can lead to fines, reputational loss, and customer churn.
4. Consumer Trust
Australians expect safe, frictionless digital experiences. A single fraud incident can erode customer loyalty.
What Defines the Best Anti-Fraud Solution?
1. Real-Time Fraud Detection
The solution must monitor and analyse transactions instantly, with no batch delays.
- Velocity monitoring
- Device and IP fingerprinting
- Behavioural biometrics
- Pattern recognition
2. AI and Machine Learning
The best anti-fraud systems use AI to adapt to new typologies:
- Spot anomalies that rules miss
- Reduce false positives
- Continuously improve detection accuracy
3. Multi-Channel Protection
Covers fraud across:
- Bank transfers
- Card payments
- E-wallets and digital wallets
- Remittances and cross-border corridors
- Crypto exchanges
4. End-to-End Case Management
Integrated workflows that allow fraud teams to investigate, resolve, and report within the same system.
5. Regulatory Alignment
Supports AUSTRAC compliance with audit trails, suspicious matter reporting, and explainability.
Use Cases for Anti-Fraud Solutions in Australia
- Account Takeover (ATO): Detects unusual login + transfer behaviour.
- Payroll Fraud: Flags sudden beneficiary changes in salary disbursement files.
- Romance & Investment Scams: Detects unusual transfer chains to new or overseas accounts.
- Card-Not-Present Fraud: Blocks suspicious e-commerce transactions.
- Crypto Laundering: Identifies fiat-to-crypto activity linked to high-risk wallets.
Red Flags the Best Anti-Fraud Solution Should Catch
- Large transfers to newly added beneficiaries
- Multiple small transactions in rapid succession (smurfing)
- Login from a new device/IP followed by immediate transfers
- Customers suddenly transacting with high-risk jurisdictions
- Beneficiary accounts linked to mule networks
How to Choose the Best Anti-Fraud Solution in Australia
Key questions to ask:
- Can it handle real-time detection across all channels?
- Does it integrate seamlessly with your AML systems?
- Is it powered by adaptive AI that learns from evolving fraud tactics?
- How well does it reduce false positives?
- Does it meet AUSTRAC’s compliance requirements?
- Does it come with local expertise and support?
Spotlight: Tookitaki’s FinCense as the Best Anti-Fraud Solution
Among global offerings, FinCense is recognised as one of the best anti-fraud solutions for Australian institutions.
- Agentic AI detection for real-time fraud monitoring across banking, payments, and remittances.
- Federated learning from the AFC Ecosystem, bringing in global crime typologies and real-world scenarios.
- FinMate AI copilot helps investigators close cases faster with summarised alerts and recommendations.
- Cross-channel visibility covering transactions from cards to crypto.
- Regulator-ready transparency with explainable AI and complete audit trails.
FinCense not only detects fraud — it prevents it by continuously learning and adapting to new scam typologies.
Conclusion: Prevention = Protection = Trust
In Australia’s high-speed financial landscape, the best anti-fraud solution is the one that balances real-time detection, adaptive intelligence, and seamless compliance. It’s not just about stopping fraud — it’s about building trust and future-proofing your institution.
Pro tip: Don’t just ask if a solution can detect today’s fraud. Ask if it can evolve with tomorrow’s scams.
Malaysia’s Compliance Edge: Why an Industry-Leading AML Solution Is Now Essential
Financial crime is moving faster than ever — and Malaysia needs an AML solution that can move faster still.
The Rising Stakes in Malaysia’s Fight Against Financial Crime
In Malaysia, the financial sector is at a crossroads. With rapid digitalisation, the boom in fintech adoption, and cross-border flows surging, financial crime has found new entry points. Bank Negara Malaysia (BNM) has been firm in its stance: compliance is not optional, and institutions that fail to meet evolving standards face reputational and financial fallout.
At the same time, fraudsters are becoming more sophisticated. From money mule networks exploiting young workers and students to investment scams powered by social engineering and deepfakes, Malaysia is seeing threats that transcend borders.
Against this backdrop, the demand is clear: financial institutions need an industry-leading AML solution that not only meets regulatory expectations but also builds consumer trust in a fast-changing market.
Why “Industry Leading” Is More Than a Buzzword
Every vendor claims to offer the “best” AML software, but in practice, very few solutions rise to the level of being industry leading. In the Malaysian context, where financial institutions must juggle FATF recommendations, BNM guidelines, and ASEAN cross-border risks, the definition of “industry leading” is clear.
An AML solution in Malaysia today must be:
- AI-driven and adaptive — able to evolve with new money laundering and fraud typologies.
- Regulator-aligned — transparent, explainable, and in line with AI governance principles.
- Comprehensive — covering both AML and fraud in real-time, across multiple payment channels.
- Scalable — capable of supporting banks and fintechs with diverse customer bases and transaction volumes.
- Collaborative — leveraging intelligence beyond siloed data to detect emerging risks faster.
Anything less leaves financial institutions vulnerable.
The Challenge with Legacy AML Systems
Many Malaysian banks and fintechs still rely on legacy transaction monitoring systems. While these systems may tick the compliance box, they struggle with modern threats. The common pain points include:
- High false positives — compliance teams are overwhelmed with noise instead of meaningful alerts.
- Static rule sets — traditional systems cannot keep pace with the speed of criminal innovation.
- Limited explainability — leaving compliance officers unable to justify decisions to regulators.
- Fragmentation — siloed systems across AML and fraud prevention create blind spots in detection.
The result? Compliance teams are overstretched, risks are missed, and customer trust is eroded.
Tookitaki’s FinCense: Malaysia’s Industry-Leading AML Solution
This is where Tookitaki’s FinCense stands apart — not just as another AML system, but as the Trust Layer to fight financial crime.
FinCense is purpose-built to help financial institutions in Malaysia and beyond move from reactive compliance to proactive prevention. Here’s why it leads the industry:
1. Agentic AI Workflows
FinCense harnesses Agentic AI, a next-generation compliance framework where AI agents don’t just analyse data but take proactive actions across the investigation lifecycle. This enables:
- Automated alert triage
- Smarter case management
- Real-time recommendations for compliance officers
The outcome: compliance teams spend less time firefighting and more time making strategic decisions.
2. Federated Learning: Collective Intelligence at Scale
Unlike siloed systems, FinCense taps into a federated learning model through the AFC Ecosystem — a community-driven network of financial institutions, regulators, and compliance experts. This allows Malaysian banks to detect threats that may have first emerged in other ASEAN markets, giving them a head start against syndicates.
3. Explainable, Regulator-Aligned AI
Trust in compliance technology hinges on explainability. FinCense is designed to be fully explainable and auditable, aligned with frameworks like Singapore’s AI Verify. For Malaysian banks, this ensures regulators can clearly understand the basis for alerts, reducing friction and enhancing oversight.
4. End-to-End Coverage: AML + Fraud
FinCense goes beyond AML, offering integrated coverage across:
- Transaction monitoring
- Name screening
- Fraud detection
- Smart disposition and narration tools for investigations
This eliminates the need for multiple systems and ensures compliance teams have a single view of risk.
5. ASEAN Market Fit
FinCense is not a one-size-fits-all solution. Its scenarios and typologies are tailored to the realities of ASEAN markets, including Malaysia’s unique mix of cross-border remittances, e-wallet adoption, and high cash usage. This localisation ensures higher detection accuracy and relevance.
What This Means for Malaysian Banks and Fintechs
Adopting an industry-leading AML solution like FinCense translates to tangible benefits:
- Reduced Compliance Costs — through automation and lower false positives.
- Faster, More Accurate Detection — stopping illicit funds before they can be layered or withdrawn.
- Regulatory Confidence — meeting BNM and FATF expectations with explainable, auditable AI.
- Stronger Customer Trust — safeguarding against scams and building confidence in digital finance.
With Malaysia pushing to strengthen its financial system and attract international investment, trust is the new currency. A compliance framework that prevents financial crime effectively is no longer optional — it is foundational.
The Road Ahead: Building Malaysia’s Trust Layer
Financial crime is only going to get smarter. With the rise of instant payments, deepfake-driven scams, and cross-border mule networks, Malaysia’s financial sector needs a solution that evolves just as quickly.
Tookitaki’s FinCense is more than software — it is the Trust Layer that empowers banks and fintechs to detect risks early, protect customers, and stay a step ahead of regulators and criminals alike.
For Malaysian financial institutions, the choice is clear: staying competitive in the region means adopting an industry-leading AML solution that can deliver speed, precision, and transparency at scale.