On 1 December 2022, the Wolfsberg Group published Principles for Using Artificial Intelligence and Machine Learning (AI/ML) in Financial Crime Compliance.

The Principles are intended to guide financial institutions and their financial crime compliance leaders and risk management teams in identifying and managing the operational and reputational risks that may arise from the use of artificial intelligence and machine learning (AI/ML).

The Principles should be operationalised by each financial institution according to a risk based approach dependant on the prevailing and evolving regulatory landscape, as well as on its use of AI/ML against financial crime, and governed accordingly.

The Principles consist of five elements that support a financial institution’s responsible use of AI/ML in financial crime compliance applications:

  1. Legitimate purpose.
  2. Proportionate use.
  3. Design and technical expertise.
  4. Accountability and oversight.
  5. Openness and transparency.