Wolfsberg Group publishes guidance on AI/ML in financial crime compliance

The Wolfsberg Group has published guidance on artificial intelligence and machine learning (AI/ML), which the association of 13 global banks believes can have, and are already having, a significant impact on improving the effectiveness and efficiency of financial crime compliance and risk management programmes.

 Principles for Using Artificial Intelligence and Machine Learning in Financial Crime Compliance identifies five elements that support an ethical and responsible use of AI/ML: legitimate purpose; proportionate use, design and technical expertise; accountability and oversight; openness, and transparency.

Data ethics

The Wolfsberg Group, which aims to develop frameworks and guidance for the management of financial crime risks, particularly with respect to know your customer, anti-money laundering and counter terrorist financing policies, says it supports the leveraging of AI/ML by financial institutions.

The group believes these technologies can help those institutions detect, investigate, and manage the risk of financial crime, as long as appropriate data ethics principles inform the use of these technologies to ensure fair, effective, and explainable outcomes.


Based on the extensive regulatory, industry and academic resources existing on data ethics,  the group has developed the principles with the aim of guiding financial institutions and their financial crime compliance leaders and risk management teams in identifying and managing the operational and reputational risks that may arise from the use of AI/ML.

A statement issued by the group says the principles should be operationalised by each financial institution according to a risk-based approach dependent on the prevailing and evolving regulatory landscape, as well as on its use of AI/ML against financial crime, and governed accordingly.

The Wolfsberg Group’s Principles for Using Artificial Intelligence and Machine Learning in Financial Crime Compliance can be found here.


Categories: Trade Based Financial crimes News

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