Deploying artificial intelligence for anti-money laundering and asset recovery: the dawn of a new era

Georgios Pavlidis

Journal of Money Laundering Control, 2023, vol. 26, issue 7, 155-166

Abstract: Purpose - This paper aims to critically examine the digital transformation of anti-money laundering (AML) and countering the financing of terrorism (CFT) in light of the Financial Action Task Force (FATF) San Jose principles, the Organisation for Economic Co-operation and Development (OECD) principles for artificial intelligence (AI) and the proposed European Union (EU) Artificial Intelligence Act. The authors argue that AI tools can revolutionize AML/CFT and asset recovery, but there is a need to strike a balance between optimizing AML efficiency and safeguarding fundamental rights. Design/methodology/approach - This paper draws on reports, legislation, legal scholarships and other open-source data on the digital transformation of AML/CFT, particularly the deployment of AI in this context. Findings - A new regulatory framework with robust safeguards is necessary to mitigate the risks associated with the use of new technologies in the AML context. Originality/value - This study is one of the first to examine the use of AI in the AML/CFT context in light of the FATF San Jose principles, the OECD AI principles and the proposed EU AI Act.

Keywords: Anti-money laundering (AML); Artificial intelligence (AI); Digitalization; Asset recovery; Know your customer (KYC); Transaction monitoring (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jmlcpp:jmlc-03-2023-0050

DOI: 10.1108/JMLC-03-2023-0050

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