AI could block $171bn in dirty money across North America | Napier AI

AI is the buzzword for making anti-money laundering strategies for financial institutions more effective at driving down financial crime. Most larger financial institutions are already on the path towards AI implementations, but many MLROs are reluctant to accept AI. This might be because of a lack of regulatory guidance on implementing AI, or a lack of skills within the organization to achieve the gold standard for AI usage.  

Despite the hype, most financial institutions are still in the nascent stages of understanding what they can deliver for the organization and the wider financial ecosystem with AI.  

The key is human in the loop, compliance-first AI, not AI first. The rate of adoption often depends on the risk appetite of an institution – but either way – AI should support rather than replace human judgement. In this article, we lay out the impact that AI could have on AML in North America, using insights from the Napier AI / AML Index 2024-2025.  

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North America displays a diverse approach to financial innovation, particularly in payments and AML compliance. In the United States and Canada, the regulatory environment and reliance on legacy banking systems have shaped distinct challenges and opportunities for integrating new technologies.

Mature markets in North America are not necessarily the most advanced in instant payments. For example, the US monetary system only aligned with global standards in 2023 with the launch of the FedNow instant payments service in July, while Canada's Real-Time Rail (RTR) has been delayed until at least 2026. Despite these delays, the strong regulatory framework helps combat financial crime effectively.

In both countries, while AI innovation is making strides, there remains hesitancy to fully integrate these advancements into AML systems due to unclear regulatory guidance and existing legacy technologies. Furthermore, recent geopolitical developments—including shifts in sanctions and tariffs—are adding complexity to AML regimes by prompting regulators to further scrutinize cross-border transactions. Overall, North America is carefully balancing innovation with regulation as it works to enhance financial crime compliance.

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Photo by Dave Hoefler on Unsplash