A presentation to ACFCS members on how AI, automation, and RegTech are impacting compliance careers.

1. ACFCSVirtual Roundtable
Presented by Christian Focacci
How AI, Automation, and
RegTech are Impacting
Compliance Careers

2. Overview
1. How will Artificial Intelligence, automation,
FinTech and RegTech affect financial crime
compliance professionals?
How do financial crime compliance professionals
currently perform their jobs and what is likely to
change in the future?
2.

3. What are we talking about?
Artificial Intelligence
Branch of computer science that aims to create intelligent machines.
Machine Learning
Machine Learning is one subfield of AI.The core principle here is that machines take data
and "learn" for themselves.
FinTech (“Financial Technology”)
An industry composed of companies that use new technology and innovation with
available resources in order to compete in the marketplace of traditional financial
institutions and intermediaries in the delivery of financial services.
RegTech (“RegulatoryTechnology”)
An industry created to address regulatory challenges in the financial services sector
through innovative technology. RegTech consists of a group of companies that use
technology to help businesses comply with regulations efficiently and inexpensively.

4. These companies attempt to make
compliance more efficient and effective
by applying technology
These companies attempt to make
banking and moving money more
easier and client-centric
FINTECH
REGTECH

5. Why now!?
Growth of available data
Advances in technology
Increasing regulatory scrutiny

6. AI Hype vs. Reality
I’ll be back…
to clear your
alerts
What the marketing hype would have you
believe is the current state of AI
The most common tool used everyday by
financial crime professionals that utilizes
machine learning and AI
HYPE
REALITY

7. Example of Real World Machine Learning Application
Unstructured News Article TODAY computers can analyze
this information and:
Extract all of the people, places, and
companies named in the article
Identify the financial crime topics in
the text, this article:
Identify the likelihood that this
article is about the search focus and
relevant to financial crime

8. Specific ways financial institutions are
adopting new tech developments today
•Automating monotonous and repetitive tasks
•Aggregating information from multiple
sources
•Reducing false positives
•Clustering new information into relevant
groups

9. Myth (probably):
AI will greatly reduce
workload

10. How can AI, AML and automation impact
jobs?
Macro Effects Micro Effects
It depends on how well you think the
industry is doing at identifying and
reporting financial crime today.
If you think we are doing GREAT:
Reduction in jobs
If you think we are doing
NOT SO GOOD:
Same or increase in jobs
• More interaction with
technology on a daily basis
• More time spent on analysis
vs. aggregation of data
• New careers for humans to
build and maintain new tech
systems

11. Good News:
Fintech and Regtech
can both lead to new
career opportunities!

12. What skills may be required to be in-demand
in the current and near future?
•“Human” skills will become as important as
ever, i.e. analysis and the ability to understand
complex and nuanced issues
•Understanding computer coding and
development will be useful in all roles

13. In Summary
Humans +
Computers =

14. About the Presenter
Christian Focacci has over 10 years of experience in anti-money
laundering/counter-terrorist financing (AML/CFT) and sanctions compliance.
He is currently the CIO ofTransparINT, a financial crime compliance
technology firm focused on helping financial institutions better identify risk
through the use of machine learning and automation.
Prior toTransparINT,Christian worked for several of the world's largest
financial institutions, including JPMorganChase, Citi, and Bank of NewYork
Mellon. He was also the founder ofAMLSource.com, a leading career
website and job board for AML compliance professionals.
Website: http://transparint.com/
LinkedIn: https://www.linkedin.com/in/christianfocacci