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Author: Don Obrien

Letter: Banks should fight fraud with artificial intelligence


Letter updates

Regarding your article “Watchdogs step up money laundering fight” (August 23) the Kroll report that anti-money laundering fines skyrocketed to nearly $1bn during the first half of 2021 just reveals what those of us in the regulation space already know: transaction monitoring cannot cope in its current state.

The financial services industry is in the middle of a great digital transformation journey. From online banking to embedded finance, digital solutions have been brought to the fore, spurred on by the effects of the pandemic and increased regulation.

Still, all of this is futile if financial institutions don’t have compliance under control. As technology gets more advanced, so do criminal tactics. We need emerging technologies like artificial intelligence to help combat this human problem.

AI can alleviate admin-heavy processes while enhancing fraud detection far beyond human capabilities. Put simply, AI in AML increases rules precision, highlighting patterns and red flags the naked human eye could never spot. It also cuts down on “false positive” alerts — of which it’s well known the industry can see rates of a staggering 99 per cent.

Technology is the key to enabling banks to clamp down on fraud. Once embraced on a global scale, these innovative approaches can change the AML landscape forever.

Livia Benisty
Head of AML, Banking Circle
London EC3, UK



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