SymphonyAI's new report with Regulation Asia reveals a gap in the adoption of artificial intelligence (AI) among Asian financial institutions. The report found that over 50% of APAC FIs are not currently using AI for anti-money laundering (AML) despite recognising AI's early proof of effectiveness in financial crime compliance.
Money laundering
Money laundering risk events in Southeast Asia climbed 64% from 2018 to 2023. According to Moody's, the top five countries in the region are Thailand, Singapore, Malaysia, Indonesia, and the Philippines.
"Financial institutions worldwide who have adopted predictive and generative AI-powered AML have seen transformational results in productivity, accuracy, and speed, yet Asian financial institutions lag their counterparts elsewhere in embracing these critical technologies," said Gerard O'Reilly, managing director of APAC, Financial Services, SymphonyAI. "The rapid growth and varying levels of regulation and market maturity in APAC financial services present a unique challenge and an opportunity for organisations. Keeping pace with compliance demands a strategic embrace of AI with full board-level buy-in to drive meaningful change."
Accelerating AI adoption
To accelerate AI adoption, the report recommends that FIs safely explore AI by starting small, open collaborations with technology providers and regulators and reinvesting operational efficiency to strengthen risk management and combat financial crime.
Moreover, FIs must also leverage AI for data quality and governance, secure regulatory support, and enhance compliance efforts.
The report "Untapped Potential: AI-enabled Financial Crime Compliance Transformation in Asia—Maturity, Applications, and Trends" is based on surveys and interviews with 126 financial crime compliance, operational, and technology practitioners from FIs across the Asia Pacific (APAC) region.
