The BIS Innovation Hub Nordic Centre has launched a new phase of Project Aurora, an initiative focused on using payment data, privacy-enhancing technologies and advanced analytics to strengthen anti-money laundering (AML) detection across institutions and borders. Phase 2 will prioritise learning initiatives and an iterative series of real-world proofs of concept that could scale to a potential pilot, alongside work on stakeholder awareness, engagement and governance. Phase 1, concluded in 2023, tested artificial intelligence, machine learning, privacy-enhancing technologies and network analysis through simulated collaborative analysis and learning approaches across institutions at national level and across borders, while protecting sensitive information. The proof of concept indicated these approaches could detect potentially up to three times more complex money laundering schemes and reduce false positives by up to 80% versus siloed, rules-based monitoring. It also highlighted the need for real-world testing and identified legal, regulatory, data protection, technical and operational challenges, plus experimental work on data standards, with user privacy in financial crime prevention also being examined separately through the BIS Innovation Hub London Centre’s Project Hertha. An open call has been launched for case studies on the use of privacy-enhancing technology in multi-party collaborative analytics to tackle money laundering, fraud and other financial crime. Further details on Phase 2 initiatives are expected to be published over the course of the project.

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