SAN MATEO, Calif.–Artificial intelligence (AI) is the most effective method for improving anti-money laundering (AML) processes and efficiencies, according to a new survey of AML professionals.
The survey, conducted by Feedzai and titled, “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.
‘The Threat’
Among the findings: 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,” Feedzai said.
In addition, despite no longer occupying the top spot, they survey found crypto remains front of mind for AML professionals, with 53% saying the money laundering activities within their scope are predominantly linked to cryptocurrency transactions.
“Cryptocurrencies' anonymous and decentralized nature is being exploited to conceal the origins of illicit funds, exacerbating the challenges in detection and monitoring,” Feedzai reported.
Additional Findings
Among the other findings in the survey:
- 33% of AML professionals say AI and machine learning are the most effective methods for preventing money laundering.
- Of those already adopting AI, 60% said that the technology has already been effective in driving efficiencies in their organization’s AML processes.
- 51% of respondents believe that an increased use of AI and machine learning is the future of AML and KYC (Know Your Customer) programs. “With the potential to instantly analyze huge data sets, AI is already helping investigators identify bad actors and diffuse threats. As a result of AI integration, we’ll see improved KYC processes, reduced false positives and also a reduced cost burden on compliance professionals,” said Feedzai in its analysis.
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