FCA Launches Synthetic Data AML Solution Sprint

The initiative aims to support firms in developing and testing transaction monitoring solutions by enabling access to realistic synthetic datasets and overcoming data sharing challenges.

Key insights include:

➡️ Use of realistic synthetic data: Generating realistic, privacy preserving dataset from real transactions, augmented with synthetic money laundering typologies;

➡️ Testing emerging technologies: The initiative enables firms to demonstrate the effectiveness of new and emerging technologies, including Artificial Intelligence (AI);

➡️ Defined problem statements: Firms can either demonstrate detection capabilities using unlabelled data or improve existing systems using labelled datasets; and

➡️ Assessing model effectiveness: The sprint explores performance, explainability, efficiency and accuracy of AML solutions.

✅ Firms should consider how synthetic data can support the development and testing of transaction monitoring models, enhance detection capabilities and address data access constraints.