Temenos has introduced a new AI-powered solution aimed at improving how banks detect and manage financial crime.

Announced at the Temenos Community Forum in Madrid, the Temenos FCM AI Agent is now generally available.

The software is designed to help financial institutions monitor and evaluate sanctions screening alerts more accurately by reducing false positives and speeding up investigations.

Temenos says the solution uses artificial intelligence to assess transactions in real time and support compliance teams in identifying genuine risks more effectively.

According to the company, initial deployments of the AI agent have shown false positive rates dropping to below 2%, compared to an industry average of 5–8%.

This, Temenos says, can lead to faster processing of legitimate payments, reduced manual reviews, and improved customer experience.

Compliance remains a major cost burden for banks, with more than 40% of expenses tied to personnel due to manual screening processes.

Temenos argues that automating parts of the workflow can help shift resources toward more complex and high-risk cases.

The AI Agent was developed in collaboration with a European tier-1 bank under Temenos’ Design Partner Program.

It is part of the company’s broader Financial Crime Mitigation (FCM) suite, which includes tools for KYC risk scoring, transaction monitoring, and payment fraud detection.

The solution can be deployed on-premise or in public or private cloud environments.

Barb Morgan, Chief Product and Technology Officer, Temenos, said,

“We’re excited to launch our new AI Agent for Financial Crime Mitigation, a proven solution co-created with a Tier-1 bank that empowers banks to stay ahead of increasingly complex compliance challenges.

By using agentic AI for real-time decision-making, we’re helping our clients screen smarter, faster, and with greater confidence.”

Featured image: Edited by Fintech News Singapore, based on image by thanyakij-12 via Freepik