Anti-money laundering in 2024 - what to expect

As we enter a new year, we outline how three key AML areas will impact regulated businesses in 2024.
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Anti-money laundering (AML) is a constantly evolving field. In 2024, AML professionals must adapt to the changing regulatory landscape, the growing use of new technologies, and evolving ways of fighting financial crime. 

As we enter a new year, we outline how three key AML areas will impact regulated businesses in 2024.

1. Regulatory changes

One of the significant AML trends for 2024 is the expected adoption of new or revised initiatives. 

For example, the European Union (EU) has plans to adopt a new AML package to harmonise rules in the union, establish a new AML authority (AMLA), and enhance cooperation and information sharing among the member states. 

Moreover, the changes will likely increase regulatory scrutiny and enforcement.

These regulatory changes will significantly impact regulated businesses, requiring them to strengthen their AML policies, implement more efficient procedures, and further educate their staff.

2. Artificial intelligence in AML

Without a doubt, 2024 is the year many businesses will adopt new technologies, such as artificial intelligence (AI), to enhance the efficiency and effectiveness of their AML processes.

AI will affect AML teams in various ways. Here are some possible consequences:

  • Companies must invest heavily in upskilling AML teams to get the necessary capabilities to use advanced technologies and methods.
  • AI can help improve the detection and prevention of financial crimes by using advanced algorithms that can learn from data, adapt to new trends, and reduce false positives.
  • AI can help AML teams optimise their processes and resources by automating repetitive tasks.

AI can also pose some challenges and risks for AML teams, such as ensuring the trustworthiness, transparency, and compliance of AI models. 

Therefore, it can be a powerful tool but requires responsible use. Before onboarding new technology in your organisation, hiring a skilled consultant or consulting with another capable third party is advisable.

3. Integrated AML processes

As regulations become stricter and financial crime becomes more sophisticated, AML teams must manage risks more efficiently across and between channels, products, and systems. Financial crime risks must be increasingly seen as a whole, not as separate parts.

We've written about how the role of the AML specialist is evolving. AML specialists should use a broader and more connected strategy to deal with the changing and complex nature of financial crime. 

That includes collaborating cross-functionally within the organisation to enable a holistic and integrated approach. They must also work more closely with other parties, including regulators and law enforcement, to exchange information and take joint actions against money laundering and related crimes. 

In conclusion

From increased regulatory complexity to the double-edged role of artificial intelligence, the upcoming year will see financial organisations navigate multiple challenges in financial crime prevention.

Faced with these changes, AML teams must be proactive, adaptive, and innovative and, in doing so, contribute to a more resilient and secure financial system in the years ahead.