Quantum Computing

Quantum Computing

The use of Quantum Computing in preventing money laundering, terrorist financing, and other criminal offenses, as well as insider trading and market manipulation, represents one of the most promising areas for the application of this advanced technology.

Quantum computers are particularly well-suited for tasks that require fast and complex analysis due to their extraordinary computational power and ability to process vast amounts of data in a short amount of time.

What is Quantum Computing?

Quantum Computing represents a groundbreaking approach to performing complex calculations that goes beyond the limitations of classical computing. At its core, quantum computing leverages qubits, which are fundamentally different from the binary bits used in traditional computers. While binary bits can only exist in one of two states, either 1 or 0, qubits introduce a realm of possibilities that transcends this binary limitation.

One of the defining features of qubits is their ability to exist in a state of „superposition.“ This means that a qubit can simultaneously hold multiple possible values. Instead of being confined to just 1 or 0, a qubit can encompass a spectrum of values, opening the door to an astonishing array of potential states for quantum computers to utilize in their calculations.

Furthermore, qubits exhibit a remarkable phenomenon known as „entanglement.“ Even when separated across vast physical distances, qubits can maintain correlations with each other. This interconnectedness enables quantum computers to perform operations that classical computers simply cannot replicate.

When should an obliged entity embrace Quantum Computing?

The decision for a business to embrace quantum computing is not one to be taken lightly. It hinges on the complexity of the mathematical problem that needs to be solved and the time constraints within which it must be solved. Quantum Computing comes into its own when faced with mathematical challenges that are excessively intricate for conventional computers to tackle within a practical timeframe.

In essence, businesses should consider quantum computing when they encounter problems that push the boundaries of classical computation, demanding a quantum leap in processing power to provide timely and effective solutions.

Which Quantum Computing resources are available?

To harness the power of Quantum Computing, businesses can explore various avenues to access quantum resources:

  1. IBM Quantum: IBM offers API access to its quantum computing resources, providing a gateway for developers and businesses to tap into the capabilities of quantum computing.
  2. Google Quantum: Google provides a Python package library that includes frameworks for programming quantum computers. This resource empowers developers to engage with quantum computing in their applications and research.
  3. Amazon Braket: Amazon aims to become a comprehensive marketplace for quantum computing through its Braket platform. This platform caters to developers engaged in scientific research, offering a diverse range of quantum computing resources and tools.
  4. Microsoft Azure: Microsoft Azure offers cloud services that encompass a mix of quantum and conventional computing capabilities. This means that businesses can access both quantum and classical resources, depending on their specific computational needs.

Quantum Computing for Anti-Money Laundering and Counter Terrorist Financing

Money Laundering is the process by which the illegal origin of funds is concealed to make them appear as legitimate income. Terrorist Financing refers to methods employed by terrorists to obtain, transfer, and use financial resources. Both activities involve concealing money flows and circumventing financial monitoring systems.

Quantum Computing can assist financial institutions in detecting patterns indicative of such illegal activities by utilizing machine learning and artificial intelligence (AI) algorithms with previously unattainable computational power.

Quantum Computers could theoretically unravel concealed transaction chains through so-called Quantum Walks, simultaneously exploring multiple paths through transaction networks. This would enable the discovery of hidden connections between seemingly independent accounts that cannot be identified by conventional computers.

Quantum Computing to prevent and detect Other Criminal Offenses

Quantum Computing can also be used in the detection of „other criminal offenses“. This term encompasses all intentionally committed criminal offenses, either domestically or in another legal jurisdiction where the financial institution is represented by subsidiaries, branches, or other means actively providing its services, which could pose a substantial risk to the institution’s assets.

  • Criminal Offense „from the outside“: This includes threats to the institution’s assets due to criminal acts by third parties (customers, non-customers).
  • Criminal Offense „from the inside“: This includes threats to the institution’s assets when at least one internal party is involved (employees or members of the institution’s organs as perpetrators).
  • Fraud and Embezzlement: Fraud is the intentional creation of an error to obtain a financial advantage. Embezzlement refers to the misuse of authority over assets to the detriment of the asset owner.
  • Theft: Theft involves the unlawful taking of another person’s movable property with the intent to unlawfully appropriate it.
  • Misappropriation: This relates to the appropriation of someone else’s movable property that has already been entrusted to the offender.
  • Robbery and Aggravated Extortion: Robbery is the taking of another person’s property by force or by threat of present danger to life or limb. Aggravated extortion involves extortion with elements of robbery.
  • Economic Offenses:
    • Safeguarding the functionality of cashless payment transactions: This includes offenses such as the abusive use of payment cards.
    • Protection of trust in the capital market: This paragraph relates to capital investment fraud, such as false statements during the issuance of securities.
  • Corruption: This includes offenses such as accepting bribes and bribery of public officials.
  • Insolvency Offenses: These offenses are committed in the context of insolvency proceedings, such as bankruptcy or preferential treatment of creditors.
  • Tax Offenses: Tax evasion and similar offenses that violate tax obligations.
  • Assisting a Criminal: Supporting a perpetrator after the commission of a criminal offense to secure the benefits of the act.
  • Offenses against Competition: This includes offenses such as restrictions on competition, cartel formation, and bid rigging.
  • Espionage and Interception of Data: Unauthorized acquisition or use of data not intended for the offender and specially protected.

Quantum Computing to prevent and detect Insider Trading and Market Manipulation

Insider Trading occurs when someone uses insider information to buy or sell financial instruments affected by this information. This includes canceling or amending an order placed before receiving insider information and also applies to auctions of emission allowances. It is also considered insider trading when someone, in possession of insider information, recommends or incites others to buy or sell financial instruments or to cancel or amend an order based on this information.

Market Manipulation is the attempt to artificially influence the price of securities to gain an economic advantage. Market Manipulation includes the conclusion of a transaction or the issuance of a trading order that provides false or misleading signals regarding the supply, demand, or price of a financial instrument, a related spot commodity contract, or an auctioned object based on emission allowances or is likely to do so.

Quantum Computing can assist in analyzing the vast amounts of data generated by stock exchanges and financial markets to identify anomalies that may indicate such practices. For example, quantum algorithms can be used to detect trading patterns indicative of insider trading by monitoring and analyzing the trading activities of all market participants in real-time. Likewise, they could be used to examine the correlation between market information and trading activities, which could provide clues to market manipulation.

Challenges and Ethics

Despite the tremendous potential, there are challenges in the adoption of Quantum Computing. The technology is still in its development phase, and there are concerns about security and the ethical implications of using such powerful systems. There is a risk that quantum computers could break existing encryption methods, potentially jeopardizing privacy. Therefore, strict security protocols and ethical guidelines must be followed when implementing Quantum Computing.


Quantum Computing has the potential to revolutionize how financial institutions operate by enabling them to respond faster and more accurately to threats and opportunities. While the technology is still maturing, current developments suggest that quantum computers could become an indispensable tool in the fight against financial crime in the near future. Financial institutions and regulatory authorities need to prepare for these changes and develop strategies to harness the benefits of Quantum Computing without compromising security and ethical standards.