Law360: AI And AML: Rulemakings Lean Into Responsible Innovation

In this first installment of a two-part series published by Law360, partners Roberto Gonzalez, Sam Kleiner and Leo Tsao discuss proposed rules from the U.S. Department of the Treasury's Financial Crimes Enforcement Network and federal banking regulators that could have a significant impact on how financial institutions integrate AI and other innovative technologies into their compliance programs. The article highlights that the rulemakings, and the recent revision of model risk management guidance to exclude generative AI, signal an increasingly supportive environment for financial institutions deploying AI in AML compliance. At the same time, this encouraging environment makes AI governance increasingly important, as regulators have stressed the need for “responsible innovation.”

Read the full article here.