DIGITAL INNOVATION, AML/CFT COMPLIANT AND RISK-BASED APPROACH

Abstract

The article analyzes a review of the best in- ternational practices in the field of AML/CFT, developed and adopted by such countries as Germany, Great Britain, USA, Singapore, France. These include the standards of the Intergovernmental Commission on Financial Monitoring (FATF), as well as the ongoing monitoring and risk-based approach that are being implemented to combat money laun- dering around the world. The following re- search methods were used in the article: an analysis of modern scientific literature by foreign authors, focused on the aspect of crimes related to money laundering in the international AML regime in accordance with FATF standards. The purpose of this study is to consider the possibility of introducing artificial intelligence (AI) in the field of AML/CFT based on an analysis of the best international practices. 13 sources were ana- lyzed, including 4 scientific articles, including those on the introduction of artificial intelli- gence in combating money laundering and terrorism financing, 5 websites of regional organizations like the FATF. The study iden- tified barriers to the introduction of digital innovations in the field of AML/CFT for both commercial organizations and supervisory authorities: the difficulties and costs associ- ated with replacing or updating outdated sys- tems, difficulties associated with the explain- ability and interpretability of digital solutions. It is concluded that, when used responsibly and proportionately, innovative AML/CFT technologies can help identify risks and fo- cus efforts on existing and emerging issues,while manual verification and human partici- pation remain critical, while developing, im- plementing and regulatory oversight of inno- vative technologies should reflect both threats and opportunities, and the use of innovative tools should be compatible with international data protection, privacy and cybersecurity standards.