Banking: Managing Digitalisation And New Frontiers

Digital transformation: from legacy to agility

One of the top three SSM supervisory priorities for 2024-2026 is progressing digital transformation. In that context, Luxembourg's banking sector is accelerating its digital journey to remain competitive in a rapidly evolving financial landscape.

The push for automation is reshaping compliance, risk management, and customer service. The use of AI tools to increase the efficiency of AML/CFT controls, notably for name screening, transaction monitoring or customer identification verification is currently a hot topic and the CSSF is watching, reminding banks (amongst others) in its latest annual report that they must maintain adequate control of their AI tools, be in a position to verify their proper functioning, and be able to demonstrate that AI can improve the quality of AML/CFT controls.