Financial crime and money laundering is a thorn in the side of financial institutions. Compliance is often costly and manual.
A 2018 report by data provider Refinitiv suggested that $1.45 trillion had been lost by businesses as a result of financial crime.
Cloud-based Icelandic anti-money laundering fintech startup Lucinity has just raised $6.1 million in fresh funding to help alleviate the problem.
"Banks are trying their hardest to combat money laundering, but the tools to prevent it are limited," Lucinity founder and CEO Gudmundur Kristjansson (better known as GK). "That's why we set out to 'make money good' using our AI to help banks ensure that the money that flows through them comes from clean sources."
The anti-money laundering company uses a cloud-based integration to help financial institutions better understand transaction data.
The new round was co-led by Karma Ventures and ByFounders, bringing the startup's total funding to $9 million. Previous investors Crowberry Capital and Preceptor Capital also participated in the company's seed round in June last year.
Lucinity was already planning for its next raise when it closed that earlier seed round, Kristjansson said. The round started off in March and was officially closed at the start of July.
"We were planning our Series A for this year and saw an opportunity in Covid. We foresaw a rapid increase in digitization and remote working that speaks perfectly to our value proposition," GK added. "We are in a position to leverage whatever situation comes out of Covid, and the fundraising showed us that many investors agree."
Lucinity's product focuses on what it calls "Human AI," effectively a feedback loop which provides charts and explanations of data, which Kristjansson calls the "secret sauce" which has been missing from many previous anti-financial crime products.
Funding will be used to continue scaling the Lucinity team as it looks to deploy its services within financial institutions in Europe and the US.
Check out Lucinity's pitch deck below: