AI Overlay Implementation in Anti-Financial Crime

This document is a technical report that discusses the implementation of an AI overlay in anti-financial crime (AFC) systems. It outlines the challenges faced by financial institutions (FIs) in transitioning from legacy systems to AI solutions. The report describes how traditional rule-based monitoring systems have become ineffective, prompting the need for AI-enhanced solutions. The AI overlay model is proposed as a means to integrate AI capabilities without completely replacing existing systems. This approach allows for improved efficiency and effectiveness in monitoring and screening processes. The document details various use cases for AI overlays, including alert prioritization and anomaly detection, while also addressing implementation considerations such as explainability and processing times. The report emphasizes that the AI overlay can provide immediate benefits and a competitive edge, making it a valuable option for FIs looking to enhance their AFC capabilities without extensive system overhauls.