Wolfsberg Principles for AI and Machine Learning in Financial Crime

The Wolfsberg group released at the end of 2022 a set of 5 principles to guide financial institutions in identifying and managing the operational and reputational risks that could arise from the use of Artificial Intelligence and Machine Learning in financial crime compliance. In this video, I share my recap of those 5 Wolfsberg group principles.
📌 *Special Offers & Promotions*:
📢 Join my Patreon community for exclusive benefits: / fcagent
🎓 Get a 20% discount on AGRC courses using code: FCA20: fincrimeagent.elearning.lgca.uk/
Thank you for your support! Your contributions allow me to continue the FinCrime Agent project and deliver high-quality content.
🔴 Enjoyed the content? Subscribe to my channel FinCrime Agent and hit the bell for notifications: bit.ly/2WQxrcT
💲 Show appreciation with a "Super Thanks" right below my video.
▬▬ CHAPTERS ▬▬
00:00 - Intro on machine learning in financial crime
01:51 - 1st principle: Legitimate purpose
02:33 - 2nd principle: Proportionate use
03:19 - 3rd principle: Design and Technical Expertise
04:15 - 4th principle: Accountability and oversight
05:06 - 5th principle: Transparency
✅ References:
The Wolfsberg Group: www.wolfsberg-principles.com/
🌐 Connect with Me: linktr.ee/fincrimeagent
DISCLAIMER
This video is intended for general informational or entertainment purposes only. The information in this video is not intended to replace legal advice. The views and opinions expressed in this video are those of the speaker/s and do not necessarily reflect the original policy or position of people, institutions or organizations that the speaker/s may or may not be associated with in professional or personal capacity, unless explicitly stated. Furthermore, no endorsement of any criminal activity is expressed or implied.
PARTNERSHIPS & AFFILIATIONS
For transparency, the video you just watched is NOT sponsored. Some of the links included in this space are affiliate links and I could earn a small commission if you make a purchase. This will be at no extra cost to you and will allow me to continue making more videos like this one.
© Marco Beranzoni - All rights reserved
No part of this video presentation may be reproduced, stored in a retrieval system or transmitted in any form or by any means, mechanical, electronic, photocopying, recording or otherwise without the prior written permission of the owner.

[@lefkizafiropoulou1084]

so AI is not appropriate ?

[@FinCrimeAgent]

Hi Lefki, thanks for commenting on this video. I think the takeaway from my video is that while AI can certainly be useful in combating financial crime, it is important to keep in mind that it should not be solely relied upon to detect and prevent illegal activity. The Wolfsberg Group, has developed those 5 principles for combating money laundering and terrorist financing that stress the importance of using a risk-based approach and ensuring that human expertise is incorporated into any system or process designed to combat financial crime. As mentioned in the video one of the key principles is that "the use of technology, including data analysis tools and artificial intelligence, is essential to identifying potential suspicious activity," but it is also important to "ensure that human expertise and judgment are applied where necessary to analyze, interpret and contextualize information." Therefore, while AI can certainly play an important role in identifying suspicious activity, it should not be seen as a silver bullet solution. Rather, it should be used in conjunction with other tools and processes, and should always be subject to human oversight and review (…at least for now). By incorporating the principles developed by the Wolfsberg Group and other experts in the field, financial institutions can ensure that they are using AI and other technologies in the most effective and responsible way possible to combat financial crime. Would you agree with my view?

[@lefkizafiropoulou1084]

@@FinCrimeAgent alright, I agree with you . I got it now.

[@FinCrimeAgent]

Nice one. Thanks for watching my videos 👍🏻