Regulators Are Killing The Banking Industry. Artificial Intelligence Can Save It.

Money laundering is the oxygen that criminal networks breathe to survive. And in doing so, they'll creatively bypass regulatory barriers that are both watered down and arrive years-too-late. The implementation of the EU's 5^th Money Laundering Directive (5MLD) is the latest in a global march of regulatory guidelines that attempt to play catch-up with increasingly adept money launderers and the criminals they support. Since the Global Financial Crisis, regulations like 5MLD attempt to tighten the noose around money laundering funnels with stricter definitions of client risk and lowering the threshold for the application of enhanced due diligence.

But for many financial institutions, providing a higher level of investigation on their Clients is not a means to an end, but an end in itself, as long as it narrowly satisfies that compliance checkbox of "doing more."