ComplyAdvantage raises $50 million to boost financial crime fight with machine learning
ComplyAdvantage, a global technology company transforming financial crime detection, has announced the close of a US$50 million Series C funding round, bringing the total investment to date to $88 million.
The company will apply the investment toward rapid product and market expansion across the United States, Europe, and the Asia-Pacific region.
The Series C round was led by Ontario Teachers’ Pension Plan Board (Ontario Teachers’), one of the world’s largest pension plans with C$207.4 billion in net assets, through its Teachers’ Innovation Platform (TIP), which focuses on late-stage venture and growth equity investments in companies that use disruptive technology. Existing ComplyAdvantage investors Index Ventures and Balderton Capital also participated in the round.
Charles Delingpole, Founder and CEO of ComplyAdvantage: “Ontario Teachers’ deep experience and credibility with global financial institutions made them a natural choice to lead the round. Ontario Teachers’ takes a long view of investing that is genuinely aligned with our own vision at ComplyAdvantage to transform how companies mitigate risk. This funding allows us to accelerate the development of our industry-leading data and suite of products to serve institutions with diverse clients and complex risk exposure.”
Already the preferred choice of some of the world’s largest banks, enterprises and high-growth fintechs, ComplyAdvantage uses machine learning and natural language processing to help regulated organizations manage their risk obligations and prevent financial crime. The company’s proprietary database is derived from millions of data points that provide dynamic, real-time insights across sanctions, watchlists, politically exposed persons, and negative news. This reduces dependence on manual review processes and legacy databases by up to 80% and improves how companies screen and monitor clients and transactions.
Olivia Steedman, Senior Managing Director, TIP, Ontario Teachers: “ComplyAdvantage offers mission-critical technology solutions for combating financial crime and keeping pace with an ever-evolving regulatory landscape. The company is well positioned to continue its rapid growth as its powerful technology platform transforms the compliance and risk management process for its clients.”
External risk indicators are becoming harder to spot as the amount of information available grows exponentially and the speed of change gathers pace. COVID-19 has created additional challenges for governments and financial institutions.
They are having to decipher changes in transaction patterns and manage new levels of risk associated with large amounts of pandemic-relief funds during a mass and unplanned migration to remote working.
Jan Hammer, Partner, Index Ventures: “Detecting financial crime in billions of transactions that take place around the globe has become nearly impossible without the application of data science and machine learning. It is this approach that has made ComplyAdvantage into a leader in the category, and the go-to partner for organizations who seek to automate what are still very often manual or inadequate processes.”