Demystifying AI for AML

The United Nations Office on Drugs and Crime estimated that US$800 billion to $2 trillion is laundered through worldwide financial systems. That’s an astonishing 2-5% of global GDP. The European Banking Federation (EBF) uniting 32 national banking associations in Europe, representing 5,981 banks with roughly 2.6 million employees.

EBF CEO Wim Mijs stated that rapidly evolving business and technology render conventional methods for anti-money laundering (AML). The future of AML is rooted in the use of innovative technologies and shared solutions that, in practice. They are confident that this collaboration with SAS will help them to prepare their members, and the broader banking community, for this new reality. In the European Union, despite the ever-rising number of suspicious activity reports, data from Europol shows that no more than 1.1% of criminally.

The European Commission introduced a new AML package. Banks and other obliged entities will need to comply with a directly applicable regulation. In early 2022, the EBF and SAS will launch a joint, virtual AML Masterclass series. This series will spotlight how artificial intelligence (AI) and machine learning can boost the effectiveness of banks’ efforts. The inaugural session will examine how AI and machine learning technology for AML really works. It will also explore shared transaction monitoring facilities. Experts will also demonstrate how solutions like digital identification and network visualization can improve the transparency and efficiency of customer onboarding.

A panel of AML experts will lead a discussion and live Q&A on how banks can embed advanced analytics into their AML frameworks. The Financial Action Task Force (FATF), the intergovernmental watchdog for financial crime, warned that the pandemic had enabled criminals to exploit digital identity loopholes. During the same time, SAS, KPMG and the Association of Certified Anti-Money Laundering Specialists (ACAMS) surveyed more than 850 ACAMS members globally.

One-third of financial institutions reported accelerating their AI and machine learning adoption for AML compliance in response to the pandemic. Another 39% indicated their AI and machine learning adoption plans continued unabated. Stu Bradley, Senior Vice President of Fraud and Security Intelligence at SAS stated that their research shows the industry at a critical crossroad. Banks by and large recognize AI as an AML game changer, yet most are still trying to wrap their arms around the technology and how to optimally harness it.

In collaboration with the EBF, they are looking forward to illuminating banks’ paths forward with practical guidance. AML can deliver bigger-picture transformation. Recent announcement was made at Sibos 2021, the world’s premier financial services conference. Attendees will learn more about the AML Masterclass series and other ways the AI and analytics leader is helping financial services.