While everyone can agree that artificial intelligence (AI) is
the next big thing, the technology is still in its infancy and many
industry-specific applications remain somewhat far off on the
horizon. One exception is anti-money laundering (AML) compliance,
where AI has already shown significant promise and meaningful
results.1
Internationally, regulators are starting to recognize the
potential value of AI to drive better AML compliance. On December
3, 2018, major American institutions, including the Board of
Governors of the American Federal Reserve System, the Financial
Crimes Enforcement Network and the Office of the Comptroller of
Currency issued a Joint Statement on Innovative Efforts to Combat
Money Laundering and Terrorist Financing (the "Joint
Statement"). 2 The Joint Statement encourages
innovation in AI by banks, even going as far as to state that,
where banks test or implement AI-based transaction monitoring
systems that succeed in identifying suspicious
