Elucidate raises 8 million to aid banks against rising financial crime

Elucidate, a financial crime risk management platform for financial crime has raised $8 Million in a round of funding led by AV8 Ventures you can also use it as a sidebar Elevator Ventures, The corporate venture capital entity Raiffeisen Bank International (RBI) Tommy Nicholas, CEO and Founder of Alloy. Existing investors APEX Ventures, Frontline Ventures, BiG Start Ventures and SixThirty Ventures also participated.

The financial sector is in a crucial time. The COVID pandemic has seen financial crime rise dramatically. Financial institutions are faced with a wider problem when trying to assess and identify financial crime. This has been highlighted by the geopolitical instability of Eastern Europe and the imposition of sanctions targeting Russia. The rise in fraud and money laundering is largely unabated. Organizations continue to rely on manual and obsolete processes to fight financial crime.

The FCA employs around 4,000 people and regulates more than 50,000. New regulations are needed to combat financial crime, such as shell company structuring or economic sanctions.

Over the coming months, Elucidate will be engaging with key public authorities in the UK, highlighting the challenges of countering financial crime through existing processes and seeking to work with these authorities, including the FCA to implement advanced, risk-based solutions for financial institution.”

Shane Riedel is co-founder and CEO at Elucidate. As the company prepares for scaling-up, the timing of the investment is crucial. “The Ukraine-Russia conflict and the complexity banks have faced implementing the most recent sanctions has, once again, revealed the sheer scale of financial crime risk banks can find themselves exposed to when they lack the proper tools.

We need a global overhaul in the way we manage financial crimes. Elucidate, with our vision to rid the Earth of financial crime, is leading this trend by demonstrating how technology can be leveraged to set a global benchmark for financial crime risk management.”

Riedel continued, “This funding validates the vital work we are doing, strengthens our position in the market and shows that especially in this current era of geopolitical instability, the financial community is calling for innovative tech solutions to overcome systemic challenges.”

By employing data analysis and modeling, Elucidate has created the world’s first regulated risk scoring system for financial crime, the Elucidate FinCrime Index (EFI), to address this very problem and simplify the way the global financial system manages financial crime.

Elucidate allows financial institutions to use sophisticated automation to detect and measure financial crime risk. Elucidate was established in 2018 and has rated over 22,000 organizations. This enables financial institutions to set a standard for financial sector compliance.

A growing number of financial institutions and individuals have already backed scaling fintech, recognising the importance of setting a global benchmark for crime risk. Investors Raiffeisen Bank International, Lisbon-based Banco de Investimento Global are two examples of these partners.

Elucidate plans to use the investment in order to consolidate its position among the top financial crime risk management platforms, grow its operations, revenue, and data-science team in Europe and the U.S., as well as expand its recently launched financial criminal risk pricing product.

The latest funding represents the latest milestone in a series. Elucidate opened a Miami office in November 2021 to expand into the USA. David Lewis, former Executive Secretary of the Financial Action Task Force, also joined Elucidate’s advisory board in February 2022. The company has raised more than $40 million in funding so far and now has over 40 employees.

Baris Aksoy (General Partner at AV8 Ventures), lead investor commented, “In a context of uncertainty and constant change, it has become nearly impossible for financial institutions to handle their increasingly complex processes in a manual way. This is where technology plays a major role in helping to overcome this problem. Elucidate’s comprehensive AI-powered data analytics engine helps bring real-time, deep visibility into financial risk exposure, and give control to the people in charge. We are thrilled to be supporting the team’s ambitious vision.”

Valerie Brunner, Group Head Institutional Clients at RBI, spoke on the investment and how it reflects RBI’s broader support of Elucidate’s work. “Elucidate enriches our internal analyses with additional external data-based assessments. This raises the discussion with our clients to a new qualitatively and quantitatively improved level and makes our compliance framework even more robust.”

Visit www. https://elucidate.co/

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