Highlights from the AML & FinCrime Tech Forum 2024
Amid the growing intricacies of financial crime, the stakes for banks and financial institutions have never been higher. Anti-Money Laundering (AML) compliance has evolved beyond being a mere regulatory obligation—it’s now a cornerstone of strategic risk management. At the recent AML & FinCrime Tech Forum in London on December 4, 2024, industry leaders, regulators and technology experts came together to explore how AI is revolutionizing the fight against financial crime. In this post, we’ll delve into the key takeaways from the forum, examine why AI is critical to addressing today’s risk and compliance challenges, and highlight how expert.ai is helping banks and financial institutions stay ahead of financial crime.
The Current Landscape: Challenges in AML Compliance
Anti-Money Laundering regulations continue to rank among the most complex and resource-intensive compliance challenges for financial institutions. Banks face an immense responsibility to prevent money laundering under penalty of law, requiring them to “know their customers” and identify any adverse news tied to clients and related parties. This rigorous scrutiny isn’t just about meeting regulatory demands—it’s about protecting the integrity of financial systems while safeguarding the organization from reputational damage and hefty penalties.
Despite significant investments in AML systems, many institutions are finding that their existing tools fall short of addressing the realities of today’s financial crime landscape. High false-positive rates overwhelm compliance teams, while gaps in detection leave institutions vulnerable to emerging risks. Inefficiencies are compounded by siloed data and rigid processes that fail to adapt to changing regulatory requirements, such as new ESG compliance measures. To keep pace, banks need solutions that can integrate data from disparate sources, increase the effectiveness and frequency of controls, and reduce compliance workloads—all while mitigating the risk of penalties for non-compliance.
The AML & FinCrime Tech Forum was a platform to explore these challenges and uncover how advanced AI solutions can help banks transform their compliance processes. Through a mix of sessions and conversations, the event highlighted where institutions are struggling and how technology providers can step up to meet their needs.
Key Takeaways from the AML & FinCrime Tech Forum
The AML & FinCrime Tech Forum provided a wealth of insights into the evolving challenges financial institutions face and how AI can transform compliance and risk management. From the discussions happening across the sessions to our conversations in the booth and on the show floor, several key themes emerged that highlight the most pressing needs and the critical role technology must play.
Financial institutions are grappling with mounting pressures from regulatory requirements, operational inefficiencies and the rapid sophistication of criminal tactics. In the keynote address, Edmund Towers, Head of Advanced Analytics & Data Science Units at the FCA, shared compelling statistics from the FCA’s latest report: 75% of banks now use AI, with 33% applying it to fraud detection, and another 33% leverage AI for regulated systems and ongoing maintenance. However, even with these advancements, significant gaps remain—86% of scams still go unreported, underscoring the urgency for more effective systems.
As highlighted in the keynote panel discussion on financial crime compliance, one of the most striking discussions centered around sanctions screening and compliance costs. Global banks collectively spend a staggering $85 trillion on compliance, representing 5-10% of their operating budgets. Yet, as Adrianna Fabijanska from ING pointed out, a one-size-fits-all approach to compliance doesn’t work, particularly when regional differences in liability create unique challenges. Meanwhile, Ronya Naim of ClearBank stressed the need to break down operational silos and unify efforts across fraud, compliance and credit risk teams.
Attendees also echoed these themes in their discussions, voicing the need for solutions that address real-world inefficiencies. They called for tools that streamline transaction monitoring, reduce false positives and enable integrated customer profile creation across data sources. The high cost of manual Know Your Customer (KYC) processes remains a pain point, with many expressing interest in automation to save time and resources. Conversations also revealed a divide between organizations debating whether to build in-house solutions or partner with external providers, reflecting the growing demand for innovative, tailored technologies.
These challenges present opportunities for AI to redefine financial crime compliance. Advanced AI systems must be able to address emerging threats, such as those presented by AI-generated fake news. The path forward demands technologies that not only enhance efficiency but also enable institutions to proactively manage risk, comply with regulations and maintain customer trust.
AI as a Strategic Enabler in Risk and Compliance Management
As financial crime grows more sophisticated, banks are being pushed to transcend traditional processes and adopt advanced technologies to stay ahead. This shift is not only essential for managing risk and compliance but also for driving operational efficiency and long-term growth. Artificial intelligence is emerging as a critical enabler, empowering banks to detect and prevent fraud, streamline Know Your Customer activities and keep up with the relentless pace of regulatory updates.
The complexity of risk management often stems from fragmented data and outdated processes. Meanwhile, financial institutions must navigate a landscape marked by increasing illegal activities, faster transaction speeds and stricter regulatory scrutiny. Relying on manual efforts to manage these challenges introduces risks, such as missed compliance updates, reputational damage and delayed detection of emerging trends. AI addresses these pain points by automating tasks, enabling real-time monitoring and supporting regulatory managers with tools that enhance precision and efficiency.
Here are just a few of the solutions that we are deploying to address these use cases:
- AML & Adverse News Screening: AI can automate media monitoring and analysis to identify news related to investigations, criminal offenses, or financial crimes involving customers or counterparties. This reduces the risk of penalties and ensures compliance with regulatory requirements.
- Regulatory Monitoring: With the constant introduction of new laws and policies, AI helps financial organizations proactively track legislative and regulatory changes, assess their impact on operations, and adapt workflows and documentation to maintain compliance.
- Horizon Scanning: AI-powered open-source intelligence (OSInt) solutions support organizations in corporate security, supplier monitoring, fraud investigations, and market intelligence, providing valuable insights to mitigate risks.
By leveraging AI to automate and enhance risk and compliance processes, banks can reduce operational burdens, improve accuracy and ensure they are well-prepared to meet both current and future regulatory challenges.
Expert.ai: A Trusted Partner in Risk Management and Compliance
Expert.ai empowers banks and financial institutions to tackle the complexities of risk management and compliance through cutting-edge AI solutions. By analyzing and extracting valuable insights from vast amounts of structured and unstructured data—including news, regulatory rules, customer inquiries, agreements and financial reports—our tools streamline critical processes and enhance operational efficiency.
Our AI-powered compliance solutions are uniquely designed to handle massive volumes of multilingual data with speed, precision and granularity. Whether it’s screening for adverse news to meet regulatory requirements or classifying data for AML and KYC processes, expert.ai delivers measurable outcomes. For instance, our Adverse News Screening solution is trusted by leading European banks, achieving:
- A 90% reduction in false positives, freeing compliance teams to focus on genuine risks
- 95% accuracy in classifying news, ensuring reliable insights for decision-making
- More than 2 million requests processed monthly, supporting high-volume environments
- 40% cost savings, enabling institutions to reallocate resources more effectively
One standout example of our expertise is our collaboration with KPMG and BCC Banca Iccrea, where we implemented an AI-powered news analytics solution to support AML processes. This dual-use system processes targeted requests and proactively monitors the entire customer base, alerting compliance teams when potential risks are detected. By combining AI with human intelligence, this solution scales processes efficiently and provides comprehensive insights.
With expert.ai as a partner, banks can transform compliance from a regulatory burden into a strategic advantage, equipping them with the tools to navigate evolving challenges while minimizing risks and costs.
Conclusion: Driving the Future of Financial Crime Compliance
The AML & FinCrime Tech Forum 2024 underscored a critical truth: as financial crime evolves, so must the technologies and strategies used to combat it. AI is no longer a luxury but a necessity in addressing the growing complexities of compliance, reducing costs, and enhancing risk management. By leveraging advanced AI solutions like those from expert.ai, banks and financial institutions can stay ahead of regulatory challenges, streamline operations, and protect both their customers and reputations. As we move forward, the institutions that prioritize innovation and collaboration will be best positioned to succeed in the fight against financial crime.
