Nasdaq Invests in Automated Financial Crime Investigator
Nasdaq Ventures Invests in Automated Financial Crime Investigations Firm Caspian
Investment bolsters Nasdaq Ventures portfolio of tech innovators; Caspian to expand AML offerings in partnership with Nasdaq
June 04, 2020 07:00 ET | Source: Nasdaq, Inc.
NEW YORK, June 04, 2020 (GLOBE NEWSWIRE) — Nasdaq (Nasdaq: NDAQ) announced today that its investment arm, Nasdaq Ventures, has taken a minority stake in the UK-based financial crime investigation automation company Caspian. In addition, Nasdaq’s Market Technology business has forged a partnership with Caspian to support the growth of the business within the Financial Crime business verticals.
With this additional funding, Caspian, an industry leader in automated AML (anti-money laundering) investigation technology, will accelerate its product expansion and scale of its award-winning platform, AML Investigator. Nasdaq’s leading position in financial crime will accelerate Caspian’s go-to-market, with the company’s expertise supporting growth at scale. Further, the two companies will look for additional opportunities to synergize R&D efforts to advance developments in combating financial crime in the global financial services industry.
“Investing in technology disruptors like Caspian that align with our business interests in improving the transparency of markets everywhere is one of the core objectives for our venture efforts,” said Gary Offner, Head of Nasdaq Ventures. “One feature that is critical to the health and integrity of the financial industry is detecting, mitigating and managing fraudulent and criminal behavior. Caspian has been at the forefront of this process through its forward-thinking technology leadership and we believe their offering greatly improves the regtech ecosystem for banks and regulators, and ultimately the consumer. We are excited to align our investment interests with our business mission to jointly strengthen the fight against financial crime through our collaboration with Caspian.”
“Caspian’s proven solution solves a huge pain point in the industry, dramatically increasing analyst productivity and resulting in meaningful cost-savings for bank compliance teams,” said Chris Brannigan, CEO, Caspian, “Our machine learning technology is validated through production use at global financial institutions, making risk decisions that are fully explainable and regulator friendly. Through the investment and partnership with Nasdaq we are excited to expand our offering at a global scale.”
The terms of the investment were not disclosed.
Nasdaq’s world-leading market technology powers more than 250 of the world’s market infrastructure organizations and market participants, including broker-dealers, exchanges, clearinghouses, central securities depositories and regulators, in over 50 countries with end-to-end, mission-critical technology solutions.
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.
Caspian automated investigation technology harnesses machine learning with human expertise to help global banks fight money laundering and financial crime. Their platform delivers proven investigation consistency and efficiencies whilst placing the explanation of decisions and regulator integrity at its core. To learn more about the company and career opportunities, visit www.caspian.co.uk or follow LinkedIn and @Caspian_uk.
This is the Financial Crimes Enforcement Network’s first enforcement action against an FCM.
There are frustrations over lack of standardization, security and inefficiencies with existing systems.
AI has significant potential in the fight against financial crime.
Exchange group says it's the first such automated solution for banks and other financial institutions.
The regulators outline their practices for assessing a bank's risk profile.