AMLC to banks: Show AI helps curb financial crime
Banks and other financial institutions using artificial intelligence to fight financial crime should be able to show that the technology helps detect risks and that its decisions could be examined, according to the Anti-Money Laundering Council.
The Anti-Money Laundering Council (AMLC) has advised banks and financial institutions to demonstrate how artificial intelligence (AI) aids in preventing financial crime, according to an announcement. Ronel Buenaventura, executive director of the AMLC, stated that supervision will increasingly rely on data and intelligence as criminals increasingly utilize digital channels.
The AMLC's director emphasized that AI can be used to automate tasks and generate insights, but the key is whether it helps institutions prevent or detect financial crimes.
Buenaventura added that institutions must be able to explain and audit their AI systems, including the data used, model checks, and the decisions produced. Nevertheless, human oversight remains crucial, and boards should receive and act on significant risks identified by the technology. The AMLC has also started adopting new tools in its own supervision, making assessments and audits more data-driven as financial institutions expand their use of technology.
Maya, a financial institution, has incorporated AI into its fraud and money laundering prevention efforts. Julie Reyes, Maya's chief risk and compliance officer, highlighted the need for an integrated approach, as fraud and money laundering teams must collaborate since scams can rapidly move through digital accounts and payment channels.
Maya has established a team to validate its AI models and has enlisted data scientists to assess risks in the context of the business. The company is also creating an inventory of its AI models, ensuring that measures are reported to technology governance committees as accuracy changes over time. Reyes stressed the importance of explaining AI decisions, especially when they impact customers, as these decisions should be explainable.
According to Buenaventura, the ultimate goal is to enhance the effectiveness of financial crime controls as risks evolve.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
