AI-Driven Compliance and Detection in Anti-Money Laundering: Addressing Global Regulatory Challenges and Emerging Threats
Year: 2024
Type: article
Abstract: Money laundering schemes have been becoming increasingly complex, imposing heavy burdens on financial institutions as well as on regulators worldwide. A given technological advancement has become an opportunity for criminals to exploit them, and the importance of robust and flexible Anti Money Laundering (AML) frameworks has been realized. This research advances the discussion on how to integrate artificial intelligence (AI) into AML systems with an emphasis on the ability of AI to enhance compliance and flag financial anomalies. Utilizing machine learning algorithms, natural language processing (NLP), and network analysis this study presents AI driven approaches to detect suspicious activities, facilitate regulatory compliance, and thwart emerging threats. It also delves into how global regulatory changes, concrete restraints like the formalization of the European Union’s Anti Money Laundering Authority (AMLA) can affect the introduction of AI technologies. Research uses real world data and simulated scenario to illustrate how AI can be applied to overcome challenges like cross border laundering, cryptocurrency risks and decentralized financial systems. These findings are intended to produce actionable insights for policymakers, financial institutions, technology developers, etc. to work together to fight against financial crimes in an increasingly digital world.
Institutions: Virtual University of Pakistan, Iqra University
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4408555971