The New ABC's: Artificial Intelligence, Blockchain and How Each Complements the Other
BSA/AML compliance programs in the United States are often associated with high costs and inefficiencies. At the core of the problem is the lack of standardization across institutions and BSA/AML compliance processes such as know your customer (KYC), customer due diligence/enhanced due diligence, and transaction monitoring and alerting. This has resulted in burdensome compliance costs for financial institutions and has also created tense relationships between such institutions and their customers.
Artificial Intelligence (AI) and blockchain could help financial institutions tackle this fragmented compliance landscape by making BSA/AML compliance more efficient. The machine-driven processes of AI, combined with the inherently secure and collaborative properties of blockchain, can facilitate a windfall in cost reduction while optimizing regulatory compliance. It is therefore incumbent upon legislators, regulators, developers and the general public alike to understand the potential in combining these two promising technologies into novel enterprise-ready solutions for BSA/AML compliance.
Keywords: Artificial Intelligence + Robotics, Blockchain, Fintech
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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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