February 15, 2022
The opportunities and challenges of new technologies for AML

- Artificial Intelligence (AI): We have just barely broken the tip of the iceberg, so to say, when it comes to AI and what it can actually do. AI systems are currently being used in many financial industries, such as chat bots and online application processes. Machine learning is a part of this recent technology that is coming to the front of many businesses. It brings a way for companies to automate their processes that would otherwise take more labor costs, but AI also brings the ability to monitor systems 24 hours a day, 7 days a week. Since AI is a computer system it will use mathematical equations to check numbers and facts. Any AML compliance issues can be brought to the attention of the compliance officers and can be stopped before it gets started.
- Natural Language Processing (NLP)-This is a part of the AI system that can mimic human languages in real time. If there are any missing sections of a conversation the AI system will use interpretative skills to fill in the blanks. It uses NLP to connect the dots to help complete a discussion that would otherwise be tossed into the garbage due to it being incomplete.
- Distributed Ledger Technology (DLT)-If you have heard of Blockchain, or seen it in action, this is what this tech is all about. It puts all information that is collected throughout the business day to a block of information on a virtual server. This information is added to the information from every other company on the server, making it a public ledger that all companies that need to see it, can. And it cannot be changed in one location without numerous others picking up on it.
- Regulatory Changes: Supervisors, managers, and owners need to be able to understand the modern technologies as they come to light. It was found during this investigation that most do not have the knowledge to understand the AI systems, let alone to be able to implement them into their operations. This comes down to one thing. The authorities and regulators of AML and CFT do not support and educate the corporate people that need to know more about the technology. The supervisors that are tech wizards and can adapt to anything are able to understand and implement AI, but they still struggle to maximize the potency of it.
- Operational Changes: These are changes to the daily operations of the financial institutions. Adjustments will need to be made, training will need to be completed and spread around to all that need to know, and programs and equipment will be added into the processes that the company undertakes. This may be the area that will prove to be the most challenging because those that have been in the business for awhile have set ways that they like to operate. This way of working will not mesh with the new way of things, making it a hard transition.