We have been asked to explain the differences between rules-engines and machine learning for anti-money laundering/banking secrecy act applications on numerous occasions. This question typically arises from the compliance team, wanting to better understand the difference between their current process and that used by a modern AI-based AML system.
Last month the US Office of the Comptroller of Currency released its 2019 Semiannual Risk Perspective report. While the report is bullish on the strength of the US economy and the banking sector as a whole is buoyant, the associated risks give cause for concern. Of particular concern are operational risks arising from persistent cybersecurity threats and compliance risk from Bank Secrecy Act/anti-money laundering (BSA/AML).