AI could block $77bn in dirty money across the Middle East | Napier AI

Artificial intelligence (AI)  has the power to completely change the way we conduct financial services, detecting financial crime is the perfect use case for it, and the region is ripe for innovation.

High costs are associated with implementing in-house AI solutions, which require substantial financial investment in infrastructure, software and talent. Additionally, the right AI implementation requires high-quality, representative and unbiased training data on customer and transaction records. It is not an understatement that navigating the complex regulatory landscape related to AI can be daunting.  

Having an understanding of regional AI regulations, and adopting a phased approach to AI implementation, starting small, will lead to long-term success in anti-money laundering (AML) efforts with AI.

In this article, we will assess how much of a material impact AI can have on AML in the Middle East region, and how much money could be saved from the hands of criminals, using data from the Napier AI / AML Index 2024-2025.

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In the Middle East, countries like the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) are embracing flexible regulatory approaches to attract global investment and foster innovation, particularly in digital payments. These markets are evolving rapidly, with a strong focus on integrating AI to enhance compliance without disrupting the customer experience or digital payment infrastructure.

The UAE's recent removal from the Financial Action Task Force (FATF) grey list reflects its progress in strengthening AML and CFT frameworks.

Financial institutions in the Middle East are leading the charge in adopting digital technologies.  AI is set to play a critical role in managing the surge in electronic payments, with explainable AI and automation being key to streamlining compliance processes.  

AI regulation is still developing in the Middle East, but it is well on its way. The Saudi Data and Artificial Intelligence Authority (SDAIA) has outlined draft AI principles that highlight the importance of transparency and delivering public benefit. With a business-friendly approach, the UAE is well-placed to further integrate AI into compliance systems, enhancing efficiency and attracting global investment while maintaining strong regulatory oversight.

Photo by Hala AlGhanim on Unsplash