The Urgency of Regulating the Use of Artificial Intelligence in Detecting Suspicious Financial Transactions

DOI

10.2991/978-2-38476-164-7_99How to use a DOI?

Keywords

Artificial Intelligence; Financial Crime Prevention; Doctrinal Analysis. Comparative Jurisprudence; Suspicious Financial Transactions; Money Laundering

Abstract

This study highlights the compelling need to integrate Artificial Intelligence (AI) to uncover the intricacies of financial misconduct in Indonesia. The decisive endorsement of AI by the Financial Action Task Force (FATF) to combat the scourge of money laundering reflects unwavering dedication. Guided by a legal methodology, this exploration of legal analysis and cross-jurisdictional comparisons spans Indonesia, Germany, the United Kingdom, and Singapore. Primary and secondary sources intertwine to create a comprehensive discourse, and guided by deductive logic, data analysis techniques unveil logical architectures from labyrinthine data. Traditional manual transaction scrutiny succumbs to evolving criminal strategies. AI’s computational finesse accelerates and sharpens analysis, potentially heightening efficiency in identifying covert financial activities. AI’s seamless integration necessitates a regulatory framework. This construct entails meticulous guidelines, policies, and statutes that govern AI’s inception, deployment, and ethical application within the financial realm. In the realm of Anti-Bribery and Corruption (ABC) law, AI’s transformative prowess can be harnessed to identify patterns of corrupt behavior, contributing to the robust enforcement of anti-corruption measures. Simultaneously, AI’s analytical acumen can synergize with money laundering law in Indonesia, significantly enhancing the detection of suspicious financial activities and illicit transactions. The cross-national insights illuminate best practices, challenges, and avenues for fortifying AI regulation, endowing legal understanding with the resilience needed to architect effective frameworks. These measures, navigated with precision, address attendant risks, encapsulating AI’s transformative potential and reinforcing the critical juncture where the Anti Bribery and Corruption Law, money laundering law, and AI intersect in Indonesia.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Fanny Tanuwijaya
AU  - Fatimah Zulfa Salsabilla
AU  - M. Arief Amrullah
AU  - Dina Tsalist Wildana
PY  - 2023
DA  - 2023/12/21
TI  - The Urgency of Regulating the Use of Artificial Intelligence in Detecting Suspicious Financial Transactions
BT  - Proceedings of the 3rd International Conference on Law, Governance, and Social Justice (ICoLGaS 2023)
PB  - Atlantis Press
SP  - 1066
EP  - 1079
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-164-7_99
DO  - 10.2991/978-2-38476-164-7_99
ID  - Tanuwijaya2023
ER  -