Lucinity's Founder and CEO, Gudmundur Kristjansson (GK), writes an article for Reuters Regulatory Intelligence about combatting financial crime in 2023 through AI and machine learning.
AML in the Economic Downturn
In the article, GK stresses the importance of strong AML controls amidst the economic downturn.
Since 2008, the number of fines levied on the banking industry has been directly connected to AML spending cuts to reduce costs, especially during significant market and operational stress. The banking industry cannot afford the financial and reputational cost of AML scandals.
Lucinity continues to advocate for leveraging augmented intelligence to produce the best results for fighting financial crime. As demonstrated by the Bunq vs. DNB case in the Netherlands, the Dutch Court's ruling recognizes that a risk-based approach leveraging AI is far more effective than the traditional rules-based approach.
Compliance as a Business Partner
As we go into 2023, compliance must be seen as a business partner that enables growth rather than a cost center to be cut during unfavorable times.
Investing in AML technology is critical to the long-term success of financial institutions because it protects institutions against money laundering events that have shown to damage shareholder value in past financial downturns.