A Scottish-based regulatory technology firm Encompass has secured a £1.97m research and development grant from Scottish Enterprise to develop a crime-busting Artificial Intelligence Platform for its financial services clients.

The news was announced by Scottish First Minister Nicola Sturgeon MSP at an event at Encompass’s HQ in Glasgow yesterday.

The company says the AI development will help Encompass customers find ‘risk relevant’ information about organisations and investments from a wide-ranging pool of data.

The funding from the Scottish national economic development agency is part of a project with a total value of £4.9m which will boost innovation and also help create 33 ‘reg-tech’ jobs in London.

The company’s focus on the Know Your Customer product uses data analytics to help ensure clients do not unknowingly trade with organised crime or the proceeds of crime, in line with new legislation introduced after the global financial crisis.

First Minister Nicola Sturgeon said: “Encompass is one of a number of international companies that have chosen to locate and steadily expand their operation making Scotland an attractive place to grow its business.

“From its Glasgow base, the company has access to markets, a supportive business environment and has been able to identify local talent from Scottish professionals in the engineering and software development sector.

“Backed by almost £2 million of R&D investment from Scottish Enterprise, Encompass will be able to develop artificial intelligence software tools that will assist companies in the financial sector reduce operational risks associated with meeting compliance and regulatory standards.”

Wayne Johnson, co-founder and CEO of Encompass, said: “We are delighted to receive this grant, which will allow us to carry out crucial, timely work. There is a considerable demand in our pace for a solution of this kind, and this development will be central to us continuing to bring innovative solutions to the market and our customers.

“We are particularly pleased to be able to advance our work in Glasgow in this way. We have enjoyed excellent support and growth here, and look forward to furthering that growth, while bringing in more skilled employees as a result of this project.”

Scottish Enterprise said it had a long-standing relationship with Encompass and was very supportive of the new AI ‘adverse news screening tool.’