OSINT helps financial institutions combat money laundering

Open Source Intelligence (OSINT) tools play a crucial role in helping financial firms combat money laundering by revealing complex networks and ownership structures. Money launderers frequently utilise layered networks of offshore entities and shell companies to obscure the true Ultimate Beneficial Owner (UBO) of a company. The manual process of identifying UBOs can be laborious and inefficient, often leading to missed insights. By leveraging public data sources such as corporate registries and property ownership records, OSINT tools can create detailed maps of intricate corporate and criminal networks. This capability allows investigators to work more efficiently, uncovering connections between individuals and companies that may have otherwise gone unnoticed. Consequently, accurate identification of UBOs enhances firms’ understanding of risk exposure and bolsters their ability to comply with regulatory requirements.

Furthermore, OSINT tools significantly enhance Know Your Customer (KYC) and Enhanced Due Diligence (EDD) processes, which are essential for preventing financial institutions from inadvertently facilitating criminal activities. Inadequate completion of these checks can result in substantial fines and reputational damage for banks. Traditionally, the volume and time sensitivity of KYC and EDD cases have limited the effective use of OSINT. However, advancements in Artificial Intelligence (AI) now allow for the automation of certain aspects of these processes, making OSINT-enhanced KYC and EDD feasible. For instance, an AI agent can conduct standard EDD checks, such as identifying company affiliations and performing adverse media checks. Human analysts can then review and refine the results as needed. Additionally, OSINT aids in spotting new laundering typologies, improving the quality of Suspicious Activity Reports (SARs), and fostering collaboration with law enforcement, ultimately leading to more effective strategies against money laundering.