Funds Europe Intelligence has launched its latest industry guide titled A smarter approach: AI & FinCrime in asset management compliance in partnership with FIS, providing insights into financial crime and compliance challenges at a time when the global compliance architecture is undergoing a seismic shift.
The guide outlines how the industry’s move towards a dynamic, risk-based approach makes use of
artificial intelligence a necessity in the fight against money laundering an fraud; facilitating significant increases in efficiency versus manual checks.
Control over processes remains paramount, however, as the guide finds practitioners firmly wedded to the concept of human-in-the-loop, especially given the early-days approach to AI in which guardrails equally must play a role.
Another challenge into the future lies in the fractured regulatory map, with jurisdictions such as the UK parked between the EU’s ambitions – as expressed through AMLA, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism – and the US approach, where states and the federal government are competing for ultimate authority on use of AI.
The report notes how this in turn is helping fuel fears that reasonable decisions made by algorithms today could be judged harshly by regulators years from now. Firms must be able to explain why decisions were made if asked about them in future – and cannot outsource that responsibility to a black box.
As AI facilitates rising attempts at money laundering and fraud, so it plays a critical role in combatting such crimes amid the need for stronger compliance practices.
To read the full report, click here.
