Exchange operator Nasdaq Inc., plans on buying Canadian firm Verafin for $2.75 billion. Verafin provides a cloud-based platform to help detect, investigate, and report money laundering and financial fraud.
Nasdaq is expanding its reach in order to help regulate the technology market, and it is repositioning itself as a leading financial technology and data vendor. Verafin provides its services to 2,000 financial institutions, and with this deal Nasdaq plans on providing it to 250 banks, exchanges, broker-dealers, buy-side organizations, and regulatory authorities. Nasdaq also launched its own anti-money laundering artificial intelligence in September.
Nasdaq’s anti-money laundering motivation comes as many banks and financial firms look to automate expensive and complex back office processes to reduce costs and increase efficiency. According to the United Nations, up to $2 trillion is laundered globally each year. The deal is expected to close in 2021.