This week, Strise, an anti-money laundering (AML) automation company, launched The AML Megaminds Report, a resource featuring insights from more than 80 financial crime experts. It includes tidbits from more than 60 hours of conversations from The Laundry, a money laundering podcast. The report uses AI to identify critical trends and themes shaping the future of AML and financial crime prevention.
The AML Megaminds Report combines viewpoints from compliance officers, law enforcement officers, investigative journalists, data scientists, and whistleblowers. It includes award-winning author Oliver Bullough, T.Raja Kumar, former Financial Action Task Force president, and member of the House of Lords Dame Margaret Hodge.
The report provides insights into the effectiveness of sanctions, the inefficiency of current AML systems, and the transformative potential of emerging technologies like AI and machine learning. At the heart of the report is a call for greater collaboration, smarter technologies, and an industry-wide shift from reactive to proactive strategies.
“By using AI to weave together the experiences and insights of over 80+ financial crime professionals, we’re offering a uniquely holistic view of the industry’s most critical challenges and opportunities,” Strise co-founder and CEO and The Laundry host Marit Rødevand said. “It’s an invaluable tool for anyone involved in financial crime prevention, and we’re proud to be at the forefront of this innovation.”
Roughly 70% of AML professionals agree that current measures are inefficient, citing outdated legacy systems, fragmented data, and overwhelming false positives as major obstacles. One expert emphasized that “relying on outdated technology is like bringing a knife to a gunfight”, calling for urgent modernization of AML infrastructure.
While sanctions remain a vital tool, 40% of experts believe they are not fully effective. Many questioned their long-term impact and pointed to issues such as “sanctions fatigue” and the potential for driving illicit activities further underground. Others highlighted success stories such as the freezing of Russian oligarchs’ assets, showcasing the importance of better-targeted sanctions and stronger enforcement.
Approximately 35% of experts agree that regulatory pressure is the primary driver for making financial crime prevention a priority at the senior management level. The threat of significant fines and reputational damage compels boards to focus on compliance and crime prevention initiatives.
Experts warn of rising threats, including cyber-enabled financial crimes, sophisticated sanctions evasion techniques using decentralized finance (DeFi), and the expansion of professional money laundering networks. Emerging technologies are making financial crimes more complex and harder to detect.
Reframing financial crime as a public health issue could allow governments to allocate resources similarly to how they handle pandemics, with emergency powers to freeze assets, force cooperation from private entities, and impose mandatory reporting for suspicious activities. Other solutions include mandating the use of AI for all financial institutions, traditional banking secrecy laws, or creating public beneficial ownership registries with blockchain verification.
The majority of experts – 70% – are optimistic about AI’s potential to improve AML efforts by automating repetitive tasks, reducing false positives, and allowing investigators to focus on high-risk cases. However, Strise found that 10% voiced concerns about over-reliance on AI, cautioning against “black box” decision-making that lacks transparency and human oversight.
What are the emerging money laundering hotspots? The report identifies real estate as the sector that is most vulnerable to money laundering, followed by cryptocurrency, luxury goods, and gambling. Experts note that the high-value nature of these markets, combined with minimal oversight, makes them prime targets for illicit financial activity. Cryptocurrency, in particular, has seen rising use of DeFi platforms and mixers to obscure the origin of funds.
“Financial crime impacts every facet of society, and we can no longer afford to operate in silos,” Rødevand said. “This report is not only a synthesis of expert opinion but a catalyst for change. We can’t keep doing the same things and expect different results. The inefficiency identified by the majority of experts signals that it’s time for a paradigm shift in how we approach AML efforts.”
“Artificial Intelligence isn’t just a buzzword; it’s a powerful tool that can help us outpace criminals,” Patrick Skjennum, CTO and co-founder at Strise, added. “The optimism shared by experts reflects the transformative potential AI holds for the future of AML.”