Although human oversight is required, advanced technologies built on AI will become pivotal in building safer financial markets and a safer world.

A decade since the global financial crisis of 2007–2008, the nature of risk that financial institutions face has remained at levels that continue to concern global financial institutions and financial analysts. Two things are contributing to this situation: the fact that financial firms operate in an increasingly interconnected, digital world where the rules around compliance are constantly being tested by the threat of cyberattacks; and the diverse, sometimes conflicting global data regulations and vulnerabilities associated with the open and collaborative nature of the Internet of Things.
As a result, regulators, compliance officers, and businesses are up against considerable odds to deliver compliance in a climate rife with the near-everyday possibility of cybercrimes, attacks on personal data, and challenges to the foundations of national and international financial stability.
In such an environment, the various constituents are seeking access to a set of clearly stated compliance rules that are as iterative, quick-moving, and responsive to changing circumstances as today’s global financial market itself. This is moving several financial sector players to turn their attention to next-generation tech solutions to track, manage, and better prepare their institutions for the kind of unforeseeable and potentially catastrophic risks that today’s interconnected and “always-on” world poses.
Built on a backbone of advanced technologies such as artificial intelligence (AI) and machine learning (ML), these solutions, with their unsurpassed capacity to reliably analyze reams of data, offer compliance teams the ability to, in real time, both quickly quarantine suspicious activity and swiftly approve safe financial transactions.
Money-laundering estimates indicate that “dirty money” accounts for 2%–5% of global GDP per annum, or up to $2 trillion of global GDP in current US dollars. 
Researchers at RMIT University in Melbourne, Australia, …

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Author: Eric Winston Executive Vice President, General Counsel, and Chief Ethics and Compliance Officer at Mphasis

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