MALAYSIAN financial institutions are set to explore wider use of artificial intelligence (AI) in detecting financial crimes following a new partnership between cloud service provider CloudMile and anti-money laundering technology firm Tookitaki.
The two companies have signed a memorandum of understanding (MoU) to develop AI-driven financial crime prevention capabilities, as banks face rising threats from sophisticated fraud networks, mule accounts and faster digital transactions.
The collaboration will combine Tookitaki’s AI-based anti-money laundering and transaction fraud detection platform with CloudMile’s cloud infrastructure and deployment capabilities for regulated industries.
The move comes amid growing concerns over the ability of conventional fraud monitoring systems to keep pace with increasingly complex financial crimes, particularly as digital banking and instant payment platforms such as DuitNow continue to expand.
Traditional rule-based systems, which rely on preset indicators to flag suspicious activities, have faced challenges including high volumes of false alerts and slower response times, the companies said.
Under the MoU, CloudMile and Tookitaki will work on developing solutions, market initiatives and knowledge-sharing programmes focused on helping Malaysian financial institutions improve fraud detection, investigation efficiency and compliance capabilities.
Tookitaki’s FinCense platform will provide the AI-driven detection capabilities, while CloudMile will support secure cloud architecture and implementation for financial institutions.
Tookitaki founder and chief executive officer Abhishek Chatterjee said financial crime networks were becoming increasingly interconnected, requiring stronger collaboration between technology providers and financial institutions.
“Financial crime is a network problem. Criminals move across institutions, and no single organisation can fight it alone,” he said.
Meanwhile, CloudMile said the partnership would help banks adopt AI-powered systems that can respond to emerging fraud patterns while meeting security and regulatory requirements.
The companies are also scheduled to host an executive briefing in Kuala Lumpur involving financial sector leaders to discuss the adoption of real-time AI detection systems and ways to improve fraud prevention measures.
