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Juan Zarate on K2’s Fintech Venture With Giant Oak for AML/CFT Efforts

Juan Zarate Chief Strategy Officer K2 Integrity
Juan Zarate, Chief Strategy Officer, K2 Integrity

K2 Integrity, formerly K2 Intelligence Financial Integrity Network, and Giant Oak have formed a joint venture in an effort to provide financial institutions a new model for anti-money laundering and combating the financing of terrorism .

Consilient will work to deliver a next generation system supported by an Intel technology to more effectively identify and manage financial risks and ensure integrity of financial systems, Consilient said Oct. 29.

"We are trying to revolutionize the AML/CFT regime through the use of federated data analytics and transfer learning," Juan Zarate, global co-managing partner and chief strategy officer of K2 Integrity, told ExecutiveBiz.

In a press release, Zarate said the current global AML/CFT system needs to be updated with a new design capable of enabling resource sharing and employing more data and machine learning. "At last, we are now in a position to redesign the system – and help banks and institutions focus more intently and cost-effectively on systemic financial crime risks that matter most to the security and integrity of their enterprises and the financial system."

The new company tapped Intel to help enable financial institutions to collaborate and ensure private data security at the same time using Dozer, a behavioral analytics tool supported by the latter company's Software Guard Extensions. 

Dozer is designed to train models across multiple sets of training data using transfer-learning and employs the hardware-based trusted execution environment of Intel SGX to protect specific application code and data.

Anil Rao, vice president and general manager of data platforms security and systems architecture at Intel, cited initial trial results between Intel and Consilient and highlighted the potential of a collaborative finance industry, which has been limited by secure information sharing.

Several industry officials have welcomed the new Consilient technology, including John Elvin, chief Bank Secrecy Act/anti-money laundering officer at PNC Bank, and Greg Baer, president and CEO of Bank Policy Institute.

"Identifying and disrupting the financial networks of criminal enterprises is a top priority for our member banks. This promising technology presents new opportunities to more effectively identify illicit financing at the source," said Baer.

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Written by Christine Thropp

oversees day-to-day content production for ExecutiveBiz, a publication under Executive Mosaic's media group covering government contracting industry news. She also writes about executive movements and commentaries, M&A activities, contract awards and technology and service offerings of medium-sized businesses and other GovCon companies. Prior to assuming her current responsibilities with EBiz, Thropp produced daily competitive intelligence briefings for the company's GovCon customers.

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