Artificial Intelligence and Money Laundering: Would AI Catch Marty Byrde? JD Supra

In the popular Netflix series Ozark, money launderer Marty Byrde expends a lot of time and energy mitigating the risks that relate to his work, including his drug cartel client, a pair of farmers, the local pastor, and his own employee and her relatives--but financial regulators never appear to be a blip on his radar. Would the series turn out differently if Marty's bank had used artificial intelligence to examine his deposits? The feds may be hoping for a plot twist. Recently, several federal agencies jointly encouraged banks to consider developing new technologies, particularly AI technologies, in order to help protect the financial system against money laundering and terrorist financing. Banks are now encouraged to "consider, evaluate, and, where appropriate, responsibly implement innovative approaches to meet their Bank Secrecy Act/Anti-Money Laundering compliance obligations" by agencies including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network (FinCEN), the National Credit Union Administration, and the Office of the Comptroller of the Currency.