Case Study

IPSWICH BUILDING SOCIETY ANTI-MONEY LAUNDERING CASE STUDY

Ipswich Building Society

Ipswich Building Society have over 160 years’ experience in providing mortgages and savings for people in the East of England. Over that time, they’ve responded to many changes in their regulatory environment. A current challenge is how to efficiently comply with FCA anti-money laundering (AML) regulations from 2017, which requires “ongoing monitoring” of transactions.

Seeking an innovative solution to support their compliance obligations, IBS’s Head of Change Ashley Burton engaged Inawisdom to use their AI platform (RAMP deployed on AWS and using the new SageMaker service) to identify savings accounts that require further compliance action. A key requirement for IBS was a means to reduce the level of “false positives” from the traditional rule-based identification methods, as human inspection of suspected account is very resource intensive.

Inawisdom employed an unsupervised anomaly detection approach that identifies unusual account usage patterns to augment the existing rules-based controls. Specific details and performance of this model cannot be provided due to the sensitive nature of regulatory requirement. However, a notable characteristic of the solution was its ease of interpretability – a crucial requirement so that outputs could be explained to the regulator rather than a “black box” approach.

Outcomes

The outcome for IBS was an approach that gives additional automated compliance controls that can be used to target valuable compliance staff’s time on the highest risk accounts.

Ashley also commented, “Working with Inawisdom was an absolute pleasure as they were focussed on the business outcome, agile and flexible in their approach, as well as providing us an extremely high quality delivery. I would without hesitation fully endorse using Inawisdom’s services to any organisation who wants innovative and business differentiated outcomes provided by a team passionate about the quality and timeliness of their delivery”.