US encourages Banks to innovate in Anti-Money laundering Monitoring

The US regulators, have encouraged banks to try out new technologies to innovate in Anti-Money Laundering and other financial crimes.

Agencies such as The Federal Reserve, The Federal Deposit Insurance Corp., The Treasury Financial Crimes Enforcement Network, the Office of the Comptroller of the Currency and the National Credit Union Administration have encouraged banks to adopt new forms of technology, such as artificial intelligence, while realizing the fact some of the adopted method, might not be successful.

The regulators have also said that that banks would not be penalized if deficiencies are found during the testing of new technology.

For example, if the banks are testing a new Artificial intelligence program for monitoring transactions, the banks might have identified suspicious activity that otherwise would not have been identified under the existing process. On basis of this, the agencies said they would not assume the banks existing process were deficient.

These Agencies will assess the existing suspicious activity process independent of the results of the pilot program.

The agencies said that early engagement can promote a better understanding and it can provide a means to discuss compliance and risk-management expectations.

Date: 03 December 2018

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