PRACTICAL SOLUTIONS
Russia , while regulators from Spain and Italy are currently investigating ChatGPT over alleged EU privacy violations .
Early this year , The U . S . National Institute of Standards and Technology created an AI framework to provide voluntary guidance for companies . The White House just released the Blueprint for an AI Bill of Rights , which addresses issues such as safety , data privacy , algorithmic discrimination , notice and explanation and human alternatives . 12 In addition , the U . S . and the EU are collaborating to promote responsible AI advancement , while protecting privacy through signing the U . S .– EU Trade and Technology Council ( TCC ) commitment . 13
Conclusion
Successfully targeting AML detection on a global scale while mitigating risk is likely to involve a hybrid approach of automated and manual processes . ChatGPT may show promise in refining AML techniques by boosting the ability of the software to interpret complex information , freeing up human analysts to focus on tasks requiring expertise and judgment .
To determine cost-effectiveness , the validity of its analysis must be established , and compliance with applicable laws , regulations and ethical considerations must be ensured . Perhaps if ChatGPT ’ s acceptance leads to a broader development of more advanced standardized AML detection strategies implemented by FATF and shared globally , we can better protect against financial crime and maintain a robust and resilient global financial system .
Michelle Hodge , CMSA , CRA , business strategist , CA , USA , michelle . hodge98 @ gmail . com ,
Carl Francois , CAMS , senior vice president , BSA and fraud officer , Southern First Bank ,
1
Greg Brockman , Mira Murati and Peter Welinder , “ Open AI API We ’ re releasing an API for accessing new models developed by Open AI ,” OpenAI , June 11 , 2020 , https :// openai . com / blog / openai-api /
2
“ A New Paradigm : Redesigning the U . S . AML / CFT Framework to Protect National Security and Aid Law Enforcement ,” The Clearing House , February 2017 , https :// www . theclearinghouse . org /~/ media / TCH / Documents / TCH % 20 WEEKLY / 2017 / 20170216 _ TCH _ Report _ AML _ CFT _ Framework _ Redesign . pdf
3
Joshua Fruth , ” Anti-money laundering controls failing to detect terrorists , cartels , and sanctioned states ,” Reuters , March 14 , 2018 , https :// www . reuters . com / article / bc-finreg-laundering-detecting / anti-money-launderingcontrols-failing-to-detect-terrorists-cartels-and-sanctioned-states-idUSKCN1GP2NV
4
“ Treasury Announces 2022 National Illicit Finance Strategy ,” U . S . Department of the Treasury , May 13 , 2022 , https :// home . treasury . gov / news / press-releases / jy0779
5
Adrian Murphy , Kate Robu and Matthew Steinert , ” The investor-centered approach to financial crime : Doing what matters ,” McKinsey & Company , May 2020 , https :// www . mckinsey . de /~/ media / McKinsey / Business % 20Functions / Risk / Our % 20Insights / The % 20investigator % 20centered % 20approach % 20to % 20financial % 20crime % 20Doing % 20what % 20 matters / The-investigator-centered-approach-to-financial-crime . pdf
6
Ibid .
7
Joshua Fruth , ” Anti-money laundering controls failing to detect terrorists , cartels , and sanctioned states ,” Reuters , March 14 , 2018 , https :// www . reuters . com / article / bc-finreg-laundering-detecting / anti-money-laundering-controlsfailing-to-detect-terrorists-cartels-and-sanctioned-states-idUSKCN1GP2NV
8
Neil Katkov , “ IT and Operational Spending on Anti-Money Laundering : 2023 Edition ,” Celent , December 10 , 2022 , https :// www . celent . com / insights / 907458524
9
“ National Money Laundering Risk Assessment ,” U . S . Department of the Treasury , February 2022 , https :// home . treasury . gov / system / files / 136 / 2022-National-Money-Laundering-Risk-Assessment . pdf ; ” National Strategy for Combating Terrorist and Other Illicit Financing ,” U . S . Department of the Treasury , May 2022 , https :// home . treasury . gov / system / files / 136 / 2022-National-Strategy-for-Combating-Terrorist-and-Other-Illicit-Financing . pdf ; “ Opportunities and Challenges of New Technologies for AML / CFT ,” Financial Action Task Force , July 2021 , https :// www . fatf-gafi . org / content / dam / fatf-gafi / guidance / Opportunities-Challenges-of-New-Technologies-for-AML-CFT . pdf . coredownload . pdf
10
Bernhard Babel , Kevin Buehler , Adam Pivonka , et al ., “ Derisking machine learning and artificial intelligence ,” McKinsey & Company , February 19 , 2019 , https :// www . mckinsey . com / capabilities / risk-and-resilience / our-insights / deriskingmachine-learning-and-artificial-intelligence
11
“ Proposal for a Regulation of the European Parliament and of the Council : Laying Down Harmonised Rules on Artificial Intelligence ( Artificial Intelligence Act ) and Amending Certain Union Legislative Acts ,” European Commission , April 21 , 2021 , https :// eurlex . europa . eu / resource . html ? uri = cellar : e0649735-a372-11eb-9585-01aa75ed71a1.0001.02 / DOC _ 1 & format = PDF 12
“ Blueprint for an AI Bill of Rights , Making Automated Systems Work for the American People ,” The White House , https :// www . whitehouse . gov / ostp / ai-bill-of-rights /
13
“ Statement by National Security Advisor Jake Sullivan on the New U . S . EU Artificial Intelligence Collaboration ,” The White House , January 27 , 2023 , https :// www . whitehouse . gov / briefing-room / statements-releases / 2023 / 01 / 27 / statement-by-national-security-advisor-jake-sullivan-on-the-new-u-s-eu-artificial-intelligence-collaboration /
48 acamstoday . org