Fear of regulatory disapproval and data integrity concerns have kept some U.S. financial institutions from more fully incorporating machine learning and other artificial intelligence-based monitoring tools into their anti-money laundering programs, say sources.
The vast majority of transfers flagged as suspicious by transactional monitoring systems are eventually cleared as false positives, racking up compliance costs for financial institutions and undermining their ability to identify illegal money flows, say sources.
Several dystopian novels describe a future in which homo sapiens become enslaved or extinct because of the rise of robots and computers. Current buzz in the compliance world doesn't include speculation on our extinction, but there is lots of talk about the rise of "regtech."