Napier AI, a RegTech delivering anti-money laundering (AML) and financial crime compliance software, has announced that its latest AI innovations are now available within its Transaction Monitoring solution, following extensive testing in the Financial Conduct Authority’s (FCA) Supercharged Sandbox.
The newly embedded feature, Insights AI, delivers behavioural analytics and natural language explanations for financial crime compliance teams, designed to close critical gaps in AML investigations.
Rather than simply surfacing alerts, Insights AI provides clear, AI-driven explanations of customer behaviour and the contributing activity behind each task, directly within transaction monitoring workflows. This aims to reduce manual analysis and context switching for financial crime analysts, helping them focus on what matters most during investigations.
Napier AI recently presented its approach to AI model testing under ‘Project Theseus’ as part of the FCA Supercharged Sandbox Showcase. The project comprised two tests — pattern mining and fluid dynamics — which applied novel frequency-based AI algorithms to large-scale synthetic financial datasets to detect money-laundering typologies more effectively than traditional rules-based systems, while also requiring significantly reduced compute power.
The models developed through Project Theseus now form part of the Napier AI Continuum platform, where they are regularly refined by the company’s data science team, and underpin the newly announced Insights AI feature.
Trusted by over 100 institutions worldwide, Napier AI designs and engineers technological innovation for financial institutions, payments, and wealth and asset management firms. Its platform, Napier AI Continuum, is positioned to transform compliance from a legal obligation into a competitive advantage.
Napier AI previously partnered with the FCA, The Alan Turing Institute, and Plenitude on a synthetic data initiative to address the lack of high-quality, realistic data for money-laundering detection. This involved building a fully synthetic dataset based on anonymised real transactions and layered typologies, enabling financial institutions to train and test their financial crime compliance strategies.
Chief data scientist Dr Janet Bastiman was also appointed to the FCA’s Synthetic Data Expert Group to provide industry-expert input into how synthetic data can be safely used and governed.
Napier AI chief data scientist Dr Janet Bastiman said, “Participating in the FCA Supercharged Sandbox allowed us to design and run new approaches to testing AI models for anti money-laundering. One of the biggest historical challenges in tackling complex money laundering typologies is the disconnected nature of the data required for pattern analysis along the complete lifecycle of a customer behaviour or transaction flow.
“I was inspired by nature to find the flow, by learning from my peers in climate research and applying the fluid dynamics of sampling river water to the way money moves through the financial services ecosystem. We developed a methodology to detect the ripples in the transaction flow where money had been injected. By applying the concept of the frequency and amplitude of waves to these “ripples” we were able to identify financial crime even when we were sampling further ‘downstream’ from the placement of illicit funds.”
Napier AI chief product officer Will Monk said, “The embedding of Insights AI into our Transaction Monitoring solution is all about ensuring the incredible data science behind the scenes is surfaced in a way that puts the power into the hands of AML analysts, to make the best possible human-in the loop decisions for the alerts.
“We lead with a compliance-first approach to AI in AML by partnering closely with the FCA so we can ensure our product aligns with regulatory guidance and meets policy goals around reducing the impact of economic crime on the UK.”
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