AI-Powered Solution Enhances Security of Real-Time Payments, First Rolled Out in the Philippines
Mastercard has officially launched TRACE (Trace Financial Crime) in Asia Pacific, an innovative anti-money laundering solution designed to detect and prevent financial crime on a network-wide scale. TRACE leverages AI-driven data science to provide financial institutions with a holistic view of illicit transactions beyond their own systems, making it easier to trace money mules and suspicious accounts across the entire payments network.
“TRACE is a game-changer in the fight against financial crime, bringing unprecedented network-level visibility to financial institutions.”
Matthew Driver, Executive Vice President, Services, Asia Pacific, Mastercard
Tackling the Risks of Real-Time Payments
Real-Time Payments (RTP) have transformed the financial landscape in Asia Pacific, allowing instant transactions between banks. However, this speed has also created opportunities for money launderers and fraudsters, who move funds rapidly through multiple accounts to evade detection. Traditional in-house AI systems often lack the ability to track these crimes beyond a single institution, making investigations slow and inefficient.
To address this challenge, Mastercard developed TRACE, which:
✔ Identifies fraudulent transaction patterns across an entire RTP network
✔ Provides proactive alerts to banks about high-risk accounts
✔ Enhances compliance with anti-money laundering regulations
First Launch in the Philippines
The first Asia Pacific implementation of TRACE took place in the Philippines, in partnership with BancNet, the operator of InstaPay, the country’s real-time interbank payment system. So far, 36 domestic banks have joined the initiative, improving their ability to:
🔹 Detect and track money mules
🔹 Trace illicit funds across multiple banks
🔹 Comply with the new Anti-Financial Account Scamming Act (AFASA)
“As scams grow more sophisticated, advanced tech-powered prevention and monitoring capabilities are critical,” said Emmie Reyes, CEO of BancNet. “TRACE gives us the intelligence to detect fraud faster and make scam prevention sharper and more effective.”
A Global Fight Against Financial Crime
TRACE was first launched in the United Kingdom in 2018, where it now covers 90% of the UK’s Faster Payments Service and has helped uncover thousands of money mule accounts. With its successful expansion to Asia Pacific, Mastercard is ready to collaborate with financial institutions across the region to further strengthen the global financial system.
