AI is the most effective method for improving anti-money laundering (AML) processes and efficiencies according to AML professionals, research from Feedzai, a pioneering provider of financial crime and risk management solutions.
AML ecosystem
Feedzai’s The State of Global Anti Money Laundering Compliance Report 2023 surveyed compliance professionals to discover what the biggest threats and opportunities are in the AML ecosystem. It found that 46% of AML professionals are concerned about increasingly sophisticated money laundering techniques, including generative AI. The threat from generative AI and linked technology is now the top challenge for AML professionals, overtaking regulation, cryptocurrency, and blockchain, the top threats cited in 2022.
Despite no longer occupying the top spot, crypto still remains front of mind for AML professionals. Over half (53%) of those surveyed said that the money laundering activities within their scope are predominantly linked to cryptocurrency transactions. Cryptocurrencies' anonymous and decentralized nature is being exploited to conceal the origins of illicit funds, exacerbating the challenges in detection and monitoring.
Result of AI integration
AML experts say AI and machine learning are the most useful plans for handling money laundering
As criminals utilize increasingly sophisticated technology, so too do those seeking to protect consumers. A third (33%) of AML professionals say that AI and machine learning are the most effective methods for preventing money laundering. Of those already adopting AI, 60% said that the technology has already been effective in driving efficiencies in their organization’s AML processes.
Looking ahead, over half (51%) of respondents believe that increased use of AI and machine learning is the future of AML and KYC (Know Your Customer) programs. With the potential to instantly analyze huge data sets, AI is already helping investigators identify bad actors and diffuse threats. As a result of AI integration, see improved KYC processes, reduced false positives, and also a reduced cost burden on compliance professionals.
Author's quote
Nick Parfitt, Principal AML SME at Feedzai said, “Fraudsters are capitalizing on fast-developing technologies to trick existing AML programs, in many cases using generative AI to their advantage. 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.”
- Network / IP
- Office surveillance
- Construction surveillance
- IP video surveillance
- Residential security systems
- Office security systems
- Retail security systems
- Construction security systems
- Campus security systems
- Office security
- Application security
- Physical security
- Industrial security
- Remote security
- Commercial security
- Perimeter security
- Factory security
- Private sector security
- Public sector security
- Security management
- Security policy
- Security devices
- Security installation
- Security tagging
- Security cameras
- Security camera systems
- Security monitoring system
- Security access systems
- Network monitoring
- Video analytics
- Security guards
- Identity management
- Security seals
- Building security
- Facility security
- Security training
- Institute security
- Public security
- Industrial security systems
- Retail security
- Wireless security
- Network cameras
- Security software
- IP Surveillance
- Security service
- Video compression
- Hybrid security
- Industrial surveillance
- Hybrid surveillance systems
- Human identification system
- Human area network
- Outdoor video surveillance
- Indoor surveillance
- IP security solutions
- Security communication
- Testing & Approvals
- Integration software
- Perimeter protection
- Research & Testing
- Cyber security
- Video Management System
- Internet of Things (IoT)
- Corporate Security
- Outdoor Security
- Indoor Security
- Central Monitoring
- Data Security
- Network Video Recorders
- Warning Devices
- IP transmission
- Incident Management
- Security Assessments
- Cloud security
- Artificial intelligence (AI)
- Blockchain
- Machine Learning
- Touchless Security
