KSY127: Ethics and Technology: Mitigating Risks of AI and Fintech in Money Laundering

 

Learning Outcomes

1. Recognize how AI and fintech are exploited for money laundering

2. Apply ethical considerations into the development and use of AI and fintech solutions.

3. Develop strategies to mitigate money laundering risks while maintaining compliance with AMLA and international regulatory standards

4. Practice a culture of ethical responsibility and compliance within organizations.

Course Contents

  • Introduction to AI, Fintech, and Money Laundering
  • Overview of AI and fintech applications in financial services. • How technology is transforming money laundering methods. • Overview of Malaysia’s AMLA 2001 and its relevance to emerging technologies. • Understanding Technological Risks in Money Laundering • AI-driven money laundering schemes: Examples and case studies. • Vulnerabilities in fintech systems (e.g., blockchain misuse, anonymous transactions). • Red flags in digital transactions and AI-enabled systems.
  • Ethical Considerations in Technology Development and Use
  • The role of ethics in designing fintech and AI tools. • Ethical dilemmas in balancing innovation and regulation. • Real-world examples of ethical failures and their consequences.
  • Mitigating Risks: Tools and Techniques
  • Leveraging AI for anti-money laundering (AML) detection and compliance. • Tools for monitoring and flagging suspicious activity Implementing robust Know Your Customer (KYC) and due diligence processes using AI.
  • Compliance with Malaysia’s AMLA 2001
  • Latest Updates on AMLA from the Securities Commission (SC) and Bank Negara Malaysia (BNM) • Key provisions of AMLA 2001 applicable to AI and fintech. • Obligations for financial institutions under Malaysian law. • Case studies: Enforcement actions and lessons learned in Malaysia.
  • Strategies for Building a Compliance and Ethical Framework
  • Best practices for aligning technology with AMLA compliance. • Developing policies to prevent AI and fintech misuse. • Promoting a compliance-first organizational culture. • Emerging trends in AI and fintech for AML efforts. • The importance of collaboration between regulators, financial institutions, and technology developers. • Preparing for the future: Evolving roles of wealth managers in combating financial crime.