Hong Kong (CNN Business)Doing business with the wrong kind of client can be extremely costly for banks.
HSBC (HBCYF) had to pay $1.9 billion in 2012 to settle allegations that it allowed international drug cartels to launder billions of dollars across borders. ING (ING) took a $900 million hit in September after admitting criminals had moved money through its accounts. And Danske Bank has in recent months found itself at the center of a scandal involving suspicious Russian funds.
A Singapore-based startup thinks artificial intelligence could help financial companies avoid that kind of trouble. Silent Eight says its technology uses AI and machine learning to identify and halt illegal transactions before they happen.
