Anti-Money Laundering (AML) and Regulatory Technology: A Systematic Literature Review

Abstract

The study explores the critical field of Anti Money Laundering (AML) and the significant role of Regulatory Technology (RegTech) in addressing AML Compliance challenges. The significance of anti-money laundering (AML) measures for maintaining economic stability has been underscored by international financial regulators and the Financial Action Task Force (FATF). The banking sector has substantially invested in advanced Regulatory Technology (RegTech) solutions. This comprehensive literature analysis, encompassing 94 publications released till November 2022, investigates the dynamic nature of difficulties in anti-money laundering (AML) compliance and the possibility of transformation through regulatory technology (RegTech). The present analysis reveals that the prevailing body of literature mainly concentrates on the issues associated with anti-money laundering (AML), regulatory frameworks, conventional rule-based monitoring, and flaws in AML systems within banking institutions. However, there needs to be more attention given to the effectiveness of artificial intelligence (AI) and blockchain-based regulatory technology (RegTech) solutions. The results of our study emphasize the need for further investigation in domains such as artificial intelligence (AI)-driven anti-money laundering (AML) solutions, the legal and ethical aspects of regulatory technology (RegTech) implementation, and the promotion of collaborative endeavors among relevant parties to strengthen the AML framework. This study offers significant contributions to improving anti-money laundering (AML) strategies and using advanced technologies to combat money laundering while also providing a direction for future studies in the domain of AML and RegTech.