Fixing AML: Can New Technology Help Address the De-risking Dilemma?

Jim Woodsome; Vijaya Ramachandran

by

Jim Woodsome

and

February 19, 2018

In 2015, a Center for Global Development working group on the unintended consequences of anti-money laundering (AML) and countering the financing of terrorism (CFT) policies argued that the policies that have been put in place to counter financial crimes may also have unintentional and costly consequences for people in poor countries.

Even while policy solutions to address de-risking are being implemented, new technologies have emerged to address de-risking by increasing the efficiency and effectiveness of AML/CFT compliance by financial institutions.

This report, to the best of our knowledge, is the first comprehensive effort to assess six key new technologies and their potential to solve the de-risking problem. With a view to educating policymakers, regulators, and the broader audience interested in addressing the de-risking problem, we describe what these technologies are and how they work.

Topics

Corruption, Transparency, and Governance

Combatting Corruption

De-risking

Technology and Development

Biometrics and the ID Revolution

Sustainable Development Finance

Illicit Financial Flows

CITATION

Woodsome, Jim, and Vijaya Ramachandran. 2018. Fixing AML: Can New Technology Help Address the De-risking Dilemma?. Center for Global Development.

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