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The UK Law Firms Approve the Use of AI in AML Armoury

The Legal Sector Affinity Group is the governing body of all the UK’s legal regulatory and representative bodies. The Group published a draft of the updated AML guidelines that is yet to be approved by the HM Treasury. 

According to the 212-page draft, new technologies like Artificial Intelligence, Machine Learning and biometric authentication can be a part of the Anti-Money Laundering (AML) checks. However, the bias in the systems must be considered while syndicating technology into AML armoury

The guidelines say,

The use of biometric indicators such as facial recognition software as part of an overall identity verification process is now widely used across various industries, and may be considered proven technology, helpful in meeting a practice’s AML obligations, especially in non-face to face situations, remote client take-on situations.” 

High-volume businesses can employ AI and machine learning and reduce the number of false-positive screening matches. It can also reduce the discounting potential matches that have significantly increased over time. 

The guidelines drafted by the law firms also state that:

  • Guidance on understanding the source of funds and income is expanded
  • Training section has been updated 
  • Section of legal professional privilege has been revised 
  • Risk assessment guidance is fully revised and expanded 
  • AML governance and internal control sections have been revised and expanded
  • High-risk sectors, customer due diligence (CDD) on referrals, accepting cash into a client account, and CDD timing have been clarified