Money laundering is a financial crime as old as money itself. It refers to any method through which money acquired through illegal means (such as drug smuggling) is reintroduced into the economy through “legitimate” financial transactions and institutions. It is also closely linked with financing terrorism.
Though the crux of the crime remains the same, over time, the means and methods used to launder money have become more diverse and complex. With the rapid growth of the global economy and new developments in technologies and methods for transferring and storing money, money laundering and terrorist financing has been given a new life, with too many moving parts for any human to be able to monitor by themselves.
In such a scenario, especially considering the rise of digital modes of finance, anti-money laundering regulations and compliance, as well as combatting the financing of terrorism is facing a new challenge world-wide.
But financial institutions are fighting back and rising to the occasion with AML Program. These solutions, backed by AI and ML, give financial institutions a fighting chance to monitor and apprehend money launderers in real-time.
Here is how you can overcome the AI chasm in AML/CFT.