The AI in Business Podcast Driving AI in Fraud and AML Compliance for Financial Services - with Nick Lewis of Standard Chartered Bank
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Jun 10, 2025 Nick Lewis, Managing Director at Standard Chartered Bank, shares his expertise on navigating financial crime prevention in a digital world. He discusses the challenges of relying on traditional rule-based systems, which often misidentify legitimate transactions, emphasizing the need for AI while retaining human oversight. Nick delves into the balance between automated systems and human judgment, addressing the difficulties of distinguishing criminal behavior in financial transactions. He also highlights the importance of cooperation in combatting cross-border financial crime.
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Limits of Rules-Based Detection
- Financial crime detection often uses rules-based red flags to spot anomalous behavior patterns.
- These anomalies can be legitimate or criminal, so distinguishing between them is crucial and challenging.
Using AI to Contextualize Anomalies
- AI can model normal client behavior and contextualize anomalies based on typical industry patterns.
- Supplementing AI with external data improves understanding of whether anomalies indicate financial crime or legitimate activities.
Balance AI With Human Judgment
- Combine deterministic rules with machine learning to filter non-concerning alerts and add context to transactions.
- Retain human investigators for complex cases since AI cannot replace nuanced judgment and cannot say "I don't know."