US firm, IM Bank to curb illicit cash

I&M Bank has partnered with American fintech software and big data analytics company ThetaRay to combat money laundering through the use of Artificial Intelligence (AI).

The new partnership will see the deployment of ThetaRay’s advanced AML (anti-money-laundering) platform across I&M Group’s operations in Kenya, Tanzania, Rwanda, Uganda, and Mauritius.

This system incorporates ThetaRay’s latest innovations, such as the generative AI Risk Catalog. By using AI, the bank will be able to monitor in real-time its entire anti-money laundering screening processes.

“We are building a compliance foundation that aligns with the future of banking – nimble, scalable, and fully integrated across jurisdictions,” said Group Chief Risk and Compliance Officer at I&M Zipporah Gitau.

The move comes at a time when central banks and financial authorities in the region are increasing scrutiny on money laundering, terrorism financing, and cross-border financial irregularities, particularly in sectors such as mobile money, trade finance, and remittances.

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Two weeks ago, the European Union (EU) classified Kenya as a high-risk country for money laundering and terrorism financing. “This marks a transformation in how we approach compliance,” said Jamie Loden, Chief Operating Officer at I&M Bank.

“Identifying and listing high-risk jurisdictions remains a crucial tool to safeguard the integrity of the EU’s financial system,” said Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments at the European Commission.

And despite AI taking root in some countries and sub-sectors, its full potential in financial crime management is yet to be realised.

Adoption of AI among financial institutions is still in its nascent stages due to challenges in data quality as well as the often-prohibitive initial acquisition cost.

The move by positions I&M positions it as one of the first banks in the region to adopt a full-stack AI solution for financial crime prevention, an area of increasing concern for African regulators and institutions alike.

“This marks a transformation in how we approach compliance,” said Jamie Loden, Chief Operating Officer at I&M Bank. “It’s no longer about meeting the minimum threshold. We’re aiming for best-in-class practices that future-proof our operations.”