HSBC, ABN Amro join large funding round for AML software startup

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Quantexa, a provider of financial crime detection software, announced Thursday it has raised $64.7 million in Series C funding from HSBC, ABN Amro Ventures, Evolution Equity Partners, Dawn Capital, AlbionVC and Accenture.

HSBC had recently said that it uses Quantexa’s software to detect financial crimes like money laundering, human trafficking and terrorist financing.

The bank says that the software has enabled it to identify transactional patterns and potential criminal activity in broader networks that might not be possible with legacy systems.

There has been a surge of investment in this space, both from banks buying this kind of software to upgrade their anti-money-laundering efforts and in venture capital firms investing in such companies.

Quantexa’s software helps to identify the true nature of entities that might be hiding behind shell companies. It uses network analytics to find suspicious associations between entities to a transaction.

The company plans to use its fresh funding to expand further into North America, the Asia-Pacific region and Europe. It also intends to develop additional applications across financial services and other sectors.

This latest round of funding follows a $22.7 million Series B round secured in August 2018, bringing total funds raised to date to $90 million.

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Financial crimes AML Money laundering