AI most effective way to tackle money laundering
AI is the most effective method for improving anti-money laundering (AML) processes, according to compliance experts.
Financial crime and risk management solutions provider Feedzai surveyed compliance professionals to discover what the biggest threats and opportunities are in the AML ecosystem.
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It found that 46 per cent of AML professionals are concerned about increasingly sophisticated money laundering techniques, including generative AI.
Compliance experts appear to think that the best way to combat the misuse of AI is with AI itself. 33 per cent say that AI and machine learning are the most effective method for preventing money laundering, and over half (51 per cent) of respondents believe that an increased use of AI and machine learning is the future of AML and know your customer programmes.
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“Fraudsters are capitalizing on fast-developing technologies to trick existing AML programmes, in many cases using generative AI to their advantage,” said Nick Parfitt, principal AML SME at Feedzai. “Our latest report reiterates the demand from AML professionals for their organizations to adopt AI in combination with human insight as a defensive weapon to improve their compliance process and efficiencies.
“Banks and financial institutions are sitting on a wealth of data that they can use to better protect their customers and business. By taking a RiskOps approach, they can put this data to good use by creating a 360-degree view of customer risk that addresses the entire lifecycle of financial crime and compliance – helping to stop criminals in their tracks before they can do any damage.”
The research also found that crypto remains front of mind for AML professionals. Over half (53 per cent) said the majority of money laundering activity they encounter is linked to cryptocurrencies.
Read more: Over £1.2bn stolen through fraud