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Using New Technologies in the Fight Against Money Laundering and Terrorist Financing
The use of new technologies has the potential to revolutionize the way we fight money laundering (ML) and terrorist financing (TF). Here, we explore the benefits and challenges of using these technologies and provide suggested actions for implementation.
Benefits
Improved Quality of Strategic Analysis
- Using advanced analytics can help process larger volumes of data, identify emerging risks, and automate risk analysis.
- Machine learning and AI-based tools can enable FIUs to identify potential cases for further in-depth operational analysis.
Better Understanding and Management of ML/TF Risks
- Digital tools can facilitate secure communication between reporting entities, competent authorities, and FIUs.
- Advanced analytics can help with receiving, storing, and analyzing Suspicious Transaction Reports (STRs) and provide feedback to reporting entities.
Challenges
Data Quality and Accuracy
- Ensuring data is accurate and complete can be a challenge when using new technologies.
- Noise reduction: Filtering out false positives and low-value STRs can be time-consuming and require significant resources.
Data Fusion
- Integrating data from multiple sources can be complex and require significant technical expertise.
Suggested Actions
- Formulate Key Strategic Considerations
- Develop a plan for introducing digital initiatives to ensure they align with organizational goals and objectives.
- Minimize Human Intervention
- Use automation and machine learning to reduce the need for manual data entry and analysis.
- Use Advanced Analytics
- Leverage machine learning and AI-based tools to improve risk analysis and identify emerging threats.
- Implement Data Communication and Dissemination Protocols
- Establish secure communication channels between reporting entities, competent authorities, and FIUs.
Conclusion
While there are potential benefits of using new technologies in the fight against ML/TF, careful planning, implementation, and ongoing evaluation are essential to ensure that these tools are effective and efficient. By formulating key strategic considerations, minimizing human intervention, using advanced analytics, and implementing data communication and dissemination protocols, we can harness the power of technology to combat money laundering and terrorist financing.