AI And Cyber-Enabled Tools Are Changing Sanctions Compliance Risks: Are You Prepared?

Highlights

• Artificial intelligence (AI) is reshaping the global economy and changing the way business is done, with dramatic implications for how companies manage compliance risk. Cybercriminals and other bad actors have new AI and cyber weapons to facilitate illicit activities at a time when U.S. regulators are increasingly focused on combating cybercrime, fraud, extortion and sanctions evasion.
• Recent actions and warnings from U.S. regulators highlight growing risks, including sanctions risks, arising from use of AI-enabled tools, stolen identities, fraudulent online personas and proxy infrastructure by illicit actors for schemes to deceive, defraud and evade sanctions.
• Sanctions are also critical in the efforts to combat these scams – as demonstrated by the U.S. Department of the Treasury's Office of Foreign Assets Control's recent designations targeting information technology worker schemes orchestrated by North Korea and a broad Southeast Asia scam network that stole