INTERVIEW
The next step is providing an environment where everyone feels safe to share what they normally would not share with others . This will lead to more trust within the government agencies .
AT : Given the evolving nature of geopolitics , how can FIs be more effective in sharing information across borders ?
JSC : First and foremost , it is important that every institution starts from a place of compliance . FIs should comply with local laws and regulations when it comes to information sharing and data privacy . Laws and regulations are different in each country , and it is important to understand the policy objectives behind the various laws . When a country puts these laws and regulations in place , they are trying to balance data , individual privacy and other policy goals similar in nature versus the security of the community when sharing information with law enforcement . Each country has its own history and politics and drivers on where they decide to come out on that continuum , and that changes over time .
You need to be aware that what is done in one country may not be done in another country . Also , what is done today might not be done tomorrow . So , if you are in financial crime compliance , you need to become an expert in data privacy as well and know what those laws are because there can often be a trade-off between privacy and security . If you are on the financial crime compliance side , you are trying to focus on the security policy goal . You want to share as much data as you possibly can , and you can only do this if you know the laws . If you are too conservative beyond what the law requires , then you might not be optimizing the security policy goal . I would tell any financial crime prevention officer today that they need to comply with all laws and regulations in each country , including those relating to data privacy , but dare to share as much as they can while keeping their customers safe .
AT : Can you share one of the goals you would like to achieve during your tenure at HSBC ?
JSC : HSBC has accomplished quite a bit and I have been lucky to be here during this time frame . We had an enforcement action against us , and we took the decision to use this as an opportunity to learn and strive to become the best at managing financial crime risk in the market . We have been on a journey that started with a long way to go , to now credibly being called out as industry-leading in this space .
Another accomplishment for HSBC is that we are leaders in developing next-generation technology for detecting financial crime and learning how to deploy it effectively .
As I look ahead , my focus will be on inspiring and helping prepare the next generation of compliance officers . The world is changing quickly , and so are the financial crime threats . This has become an important focus for me .
Finally , I would say being a part of driving effective outcomes across the whole ecosystem — not just within banks and other private sector players , but also within the public sector . We should be asking ourselves : How can we work together across the entire ecosystem to make sure we are maintaining the integrity of the financial system and safeguarding our customers and the communities we serve ? I think there is a lot more to do in driving effective outcomes . I would like to be a part of helping define that .
AT : How has HSBC leveraged artificial intelligence ( AI ) technology to help in its fight against financial crime ?
JSC : We have leveraged many aspects of AI , but I want to focus on the AML transaction monitoring space ; we have used AI and other advanced analytic technology to redesign end-to-end how we monitor customer transactions and other behaviors for signs of financial crime . This was not about taking the techniques that all of us in the industry have been using for many years and using AI to discount false positives , which is one use case for AI . Instead , we asked ourselves how we can look at all the information we have at our disposal about our customers and their counterparties to score them on their risk levels and whether or not they are engaging in financial crime through their activity . We needed a lot of processing power for this , which required us to be on the cloud . We leveraged AI and machine learning to help us to bring together all the analytic techniques to produce a score . And we use the score to determine if we need to investigate further . At this point , a person enters the scenario and looks at all the information . What we have discovered is the ability to identify more of the financial crime that has appeared in our bank . We can identify it faster and with fewer false positives , which is important because we have decreased the number of times we contact innocent customers to ask them intrusive questions . We are finding more financial crime at a faster rate ; we are reducing unnecessary friction for our good customers , and it has been a pleasure to be part of this project .
AT : To take the AI technology question a step further , what are your thoughts on generative AI and using quantum computing to help in financial crime investigations ?
JSC : It is going to become the war of machines . On the financial crime risk management side , we are going to be using quantum computing and generative AI . We are using all these tools to keep our customers safe and to protect
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