Using Artificial Intelligence to Combat Money Laundering

Abstract

Banks and other financial institutions handle sensitive records regarding people, trusts, and corporations. Money, as a sensitive and useful commodity, makes financial organizations valuable and prone to criminal elements. Common criminal activities that target the banking sector include money laundering, identity and personal records theft, and terrorism financing. These are global issues that have garnered the attention of international bodies and governments. One method proposed to deal with illicit finance and money laundering is artificial intelligence (AI). AI implements various algorithms and techniques to monitor customers, markets, and financial transactions that help identify various banking habits. Understanding clients’ transactions and the nature of bank transfers enables AI to prevent and combat money laundering. This research offers an understanding of how artificial intelligence is used in the financial system to combat fraudulent activities such as money laundering. It is organized into five chapters covering various aspects of artificial intelligence and money laundering.