Castellum.AI CUSO has raised $8.5m in a Series A funding round to enhance AI in anti-money laundering (AML) and know your customer (KYC) processes among credit unions.
The financial crime compliance platform, featuring in-house risk data and AI agents, aims to streamline compliance operations and improve efficiency.
The funding round was led by Curql, a fund supported by over 130 credit unions.
Other participants included BTech Consortium, backed by banks such as Customers Bank, and Framework Venture Partners, supported by Canadian financial institutions like RBC.
Existing investors Cameron Ventures, Remarkable Ventures, and Spider Capital also contributed to the financing.
Framework Venture Partner Ajay Gopal said: “Castellum.AI’s ability to layer AI agents on top of existing tools – working with, not against a client’s tech stack, gave us the confidence in their ability to rapidly support clients.”
Curql president and CEO Nick Evans said: “Credit unions face the dual threat of criminals using AI and legacy systems generating unnecessary compliance alerts daily.
“We’re excited to invest in Castellum.AI because they’re deploying AI agents that are fast, precise, and explainable to regulators. Credit unions need access to next-generation technology to keep up, and Castellum.AI is exactly what the doctor ordered.”
According to Castellum.AI, its platform reduces AML/KYC false positives by 94% and compliance review time by 83%, making it an attractive solution for compliance teams.
The platform’s AI agents have demonstrated proficiency by passing a CAMS practice exam, a common requirement for financial crime roles.
The AI agent training was overseen by former regulators and incorporated best practices and regulatory guidance from the California DFPI, NCUA, NY DFS, OCC, and others.
Currently, Castellum.AI is in discussions with the Association of Certified Anti-Money Laundering Specialists (ACAMS) for an official CAMS certification of its AI agent.
Castellum.AI’s platform has showed benefits for various institutions, including a sponsor bank reduced AML/KYC review costs by 88%.
Additionally, a community bank decreased transaction screening false positives by 94%, and a Fortune 50 corporation lowered Level 1 KYC alerts by 83%.
The platform provides real-time risk exposure notifications through its patented data collection and machine learning processes.
The company also offers modular implementations tailored to each institution’s risk requirements, thereby reducing switching costs and expediting the integration process.
Castellum.AI CEO and co-founder Peter Piatetsky said: “We’re excited to partner with credit union compliance teams dedicated to onboarding members more quickly and unblocking transactions.
“We have a registered CUSO to streamline the acquisition process for credit unions so they can access the value that other financial institutions have already experienced with Castellum.AI.
“By embedding AI into our platform, we’ve enabled AI summaries for global adverse media that dramatically reduce review times, AI-powered enrichments that categorise unstructured data in real-time, AI agents that review alerts – and more.”
