EverCompliant, which Fights Money Laundering, Raises Funding from AmEx

The New York-based company develops a system that uses artificial intelligence to automatically identify culprits funneling illicit funds through seemingly legitimate storefront websites

American Express’ investment arm has made a strategic investment in electronic money laundering prevention company EverCompliant Ltd., the company announced Tuesday. Previous investors in the EverCompliant include London-based fund Arbor Ventures, Israel-based Carmel Ventures and New York-based venture capital firms Nyca Partners and StarFarm Ventures, a firm dedicated to investments in Israeli startups.

 

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The financial details of the deal were not disclosed. EverCompliant plans to use the funds to recruit more personnel and develop its technology.

 

EverCompliant CEO Ron Teicher. Photo: PR

Founded in 2008 and headquartered in New York with additional offices in San Francisco, Tel Aviv, and Shanghai, EverCompliant develops a system that uses artificial intelligence to automatically identify culprits funneling illegal transactions through seemingly legitimate storefront websites. The system allows merchant service providers to monitor and verify a third-party’s identity and prevent the processing of fraudulent transactions. Excluding this investment, the company has raised $13 million to date according to Crunchbase data.

 

EverCompliant's technology allows online commerce services to root out the bad actors infiltrating their systems and ensure that only legitimate transactions are processed, Harshul Sanghi, a managing partner at American Express Ventures, said in a statement. "As more commerce shifts online, the need for advanced solutions that can help payment service providers fight fraudulent transactions will continue to grow,” he added.