Banks’ anti-money laundering efforts – The role of RegTech and AI and culture

Babajide Oniwinde

Chapter 10 in Corporate Governance and Culture in Financial Institutions, 2025, pp 285-312 from Edward Elgar Publishing

Abstract: The growing penalties and sanctions imposed on banks for anti-money laundering (AML) violations suggest that banks are failing in their fight against financial crime. While advanced technologies such as artificial intelligence and machine learning have been used to enhance compliance, the success of these efforts depends on a strong internal culture that prioritises regulatory compliance and a deep commitment to AML regulations. The author in this chapter identifies problematic cultural dynamics within banks that may hinder compliance, such as a ‘tick-box’ culture, resistance to change, a culture that fails to instil personal responsibility for AML and one that prioritises revenue generation over market integrity. Insights gathered from compliance officers indicate that while advanced technology aids businesses, it also poses risks of bad actors inventing ways to bypass AML controls. This chapter encourages banks to balance technological investment with a focus on cultivating the right cultural environment to effectively fight money laundering. The chapter offers valuable insights to better combat financial crime and ensure compliance with anti-money laundering regulations.

Keywords: Anti-money laundering; Banks; Compliance; Culture; Financial crime; Regulation (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035317899
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