Banking Has Spent 20 Years Fighting Alert Noise. Engineering Should Learn From It
In 2014, financial intelligence units across the European Union received almost a million suspicious transaction reports.
Around ten per cent of them were investigated further. Roughly one per cent of criminal proceeds were confiscated. Europol, publishing those figures in 2017, noted that the ten per cent had not moved since 2006.
Those reports are what survives the filter. Long before a report is written, an analyst has worked through a queue of machine-generated alerts, and the overwhelming majority of those close with no further action at all.
I cannot give you a defensible industry-wide percentage for that last part, and I want to be straight about why. The figure everyone quotes; ninety to ninety-five per cent appears in dozens of compliance vendor publications, each citing another vendor publication, with the earliest reference I can trace being unpublished consultancy analysis from 2017. There is no regulator, no financial intelligence unit and...
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