Are Artificial Intelligence And Machine Learning The Next Frontiers For Fighting Money Laundering?

Within the financial services sector, Anti-Money Laundering (AML) is a significant challenge for many institutions, often consuming large numbers of people and effort to manage the process and comply with the regulations. As a result, these same institutions are looking for new solutions to help them reduce the burden and increase the controls in this complex space. The combination of artificial intelligence (AI) and, more specifically, machine learning (ML), are increasingly being considered as enablers of a better solution. Despite its potential, however, adoption of AI and ML within Anti-Money Laundering has been relatively slow. This is due, in part, to the limited understanding of how AI and ML could be applied within compliance programs, and to the fact that regulators and compliance officers are often concerned that AI and ML are "black boxes" whose inner workings are not clearly understood.