AI is the most effective method for improving anti-money laundering (AML) processes and efficiencies according to AML professionals and research from Feedzai, a leading provider of financial crime and risk management solutions.
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 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 decentralised nature is being exploited to conceal the origins of illicit funds, exacerbating the challenges in detection and monitoring.
As criminals utilise 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 method for preventing money laundering. Of those already adopting AI, 60% said that the technology has already been effective in driving efficiencies in their organisation’s AML processes.
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