Anti-money laundering (AML) software maker Lucinity has raised $17 million in a Series B round, the Icelandic company announced Thursday (July 7).
Founder and CEO Gudmundur Kristjansson said in a news release that the funding will help Lucinity expand its customer base, network of partners, staff and product offering.
Based in Reykjavik, Iceland, Lucinity develops user-centric compliance systems augmented by artificial intelligence (AI). The company said it helps banks and FinTechs boost compliance productivity by more than 50%, allowing them to devote time to fighting financial crime instead of making sense of complicated data.
Among its recent customers is Pleo, a $4.7 billion FinTech used by 20,000 companies, and Currencycloud, which is owned by Visa.
The company also recently launched a partnership with Experian to provide ongoing Know Your Business (KYB) and risk assessments. Lucinity is also working with SEON on a joint anti-money laundering and fraud prevention solution.
In a recent interview with PYMNTS, SEON chief executive Tamas Kadar discussed how the company takes a holistic approach to cybersecurity that recognizes money laundering and fraud are interlinked.
Read more: Anti-Fraud and Anti-Money Laundering: Two Sides of the Same Coin
“It’s very useful for many businesses to check the sanction list and politically exposed persons lists to see if that individual who they’re interacting with is part of any of those lists,” Kadar said.
“It’s exciting to see Lucinity’s ground-breaking change ripple through the compliance and risk spaces,” Kristjansson said. “Our Human AI is transforming our clients’ productivity, and our partnerships are creating incredible productivity innovations for customers to leverage.”
The funding round was led by Keen Venture Partners, with participation by Experian and existing investors Crowberry Capital, Karma Ventures and byFounders.
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“Banks and FinTechs are stuck between a rock and a hard place where compliance is a big headache for them, and they are trying to wrap their heads around how to approach it in a truly risk-based fashion,” said Robert Verwaayen, general partner at Keen Venture Partners. “We are extremely excited about Lucinity’s platform and its promise to address the global issue of financial crime.”