Liechtenstein Turns to Artificial Intelligence to Fight Financial Crime
The Principality of Liechtenstein has taken a significant step towards tackling financial crime with the introduction of artificial intelligence (AI) technology. As the country’s economy continues to grow, so too do concerns over money laundering, online fraud and cybercrime.
The Challenge of Financial Crime
Financial experts warn that traditional methods of detecting financial crimes are becoming increasingly ineffective in the digital age. However, AI has emerged as a powerful tool in the fight against financial crime, allowing organizations to streamline and expedite manual processes while reducing costs.
Key Benefits of AI in Fighting Financial Crime
- Identifies patterns and anomalies in large datasets
- Improves accuracy and efficiency of financial crime prevention models
- Reduces costs associated with manual processes
The Path Forward for Liechtenstein
To ensure the successful integration of AI into its financial crime prevention efforts, the government of Liechtenstein has established a clear governance framework. This includes developing a data governance framework, building a skilled AI team, and investing in necessary hardware and software.
Key Components of Liechtenstein’s Governance Framework
- Developing a data governance framework
- Building a skilled AI team
- Investing in necessary hardware and software
PwC’s Model Edge: A Powerful Tool for Financial Crime Prevention
PwC’s Model Edge is a model risk management tool designed to help organizations manage and govern their financial crime prevention models. The platform streamlines and governs the model lifecycle across all lines of defense, serves as a purpose-built model headquarters, and embeds trust in AI models by leveraging PwC’s Responsible AI framework.
How Model Edge Can Help Organizations
- Integrates and preprocesses various data sources
- Develops and evaluates fraud detection models using machine-learning capabilities
- Deploys these models into operational systems through Model Edge
- Monitors transactions in real-time
The Future of Financial Crime Prevention with AI
As the financial industry continues to evolve, AI is expected to play an increasingly prominent role in fighting financial crime. Smaller organizations may become bigger players with the level playing field AI helps create, and larger organizations will need to adapt to remain competitive.
Key Takeaways
- AI is becoming a de facto standard for financial crime prevention
- Organizations must adapt quickly to remain competitive
- Liechtenstein authorities are optimistic about the potential of AI to combat financial crime