Shinhan Bank Builds Big Data and Digital-Based Foreign Exchange Transaction Monitoring System

Global Sanctions Risk Using Big Data - Preventing Abnormal Transactions in Advance

[Asia Economy Reporter Yu Je-hoon] Shinhan Bank announced on the 12th that it has established the 'S-TBML' system to proactively respond to trade-based money laundering (TBML) and strengthen competitiveness in foreign exchange transactions.

S-TBML is a system that detects money laundering and suspicious transactions based on trade and foreign exchange big data. It utilizes various data from foreign exchange transactions such as ▲checking trade transaction counterparties and ultimate beneficial owners ▲monitoring unusual transactions ▲detailed inspection of trade documents to prevent global sanction risks and suspicious transactions in advance.

Since 2018, Shinhan Bank has developed a digital monitoring platform for foreign exchange transactions by leveraging its expertise in trade-based money laundering inspections and Shinhan DS's digital financial service development technology. In September last year, it integrated AI (artificial intelligence) and OCR (optical character recognition) technologies to establish an automatic sanction detection system.

In particular, Shinhan Bank became the first in the financial sector to introduce an automated trade document inspection system using AI and OCR, improving the waste of resources previously spent on manual inspection of trade supporting documents and significantly enhancing the speed and quality of foreign exchange transaction inspections.

A Shinhan Bank official stated, "Using data and digital technology to inspect complex global foreign exchange transactions is an essential task for banks," adding, "We will continue to advance the S-TBML system to identify money laundering and suspicious transactions related to trade and proactively prevent global sanction risks."