RegTech Smart Banking AML

I read this with interest.

[ Regtech in the Smart Banking Era – A Supervisor’s Perspective by Arthur Yuen, Deputy Chief Executive, Hong Kong Monetary Authority ]

https://www.hkma.gov.hk/eng/key-information/speech-speakers/akhyuen/20180927-1.shtml

In particular, the application of RegTech solutions in the financial crimes surveillance technologies. 

Regtech Smart Banking

The complexity of domestic and cross border white collar crimes  have inadvertently "compelled" regulators to (a) look within as well as (b) cooperation among financial regulators and other authorities to fight crimes through some means of information sharing.  Within the country, Regulators are looking at what is known as "Public-Private Partnerships" to exchange pertinent data on financial crime risk indicators and of course, trying to understand and overcome the "pain points" for all stakeholders.  What eventually unfolds only await to be seen in due course.  There are challenges no doubt and Regulator(s) will also have to be confronted with real practical issues [for the first time] especially when such information sharing does invoke certain False Positive(s) on customers.  Customer(s) De-risking?  Think about the inherent impact, you will understand the underlying implications.

Last year, as ISCA (SIngapore) was holding its programme on Forensics some time in September 2017, one of my colleagues asked, "What will happen to my job as an Investigator?  Given the push for Artificial Intelligence (AI) and automated solutions in transaction surveillance, what prospects hold for me?  Should I even continue in this area"  He was for sure worried.  

Will automated change the dimension for investigators?  Yes, inevitably and definitely!  My short reply to him was, "machines cannot fully replace humans.  But we need even more qualified and skilled personnel to make sense of this AI-related technologies."   I added this, "if I am criminal, I will find, exactly, the reverse logic to re-combat the technologies."  No matter how technologies advance, the techniques are at least one-bound behind the criminals.  Learning logic is the in thing.  But human minds are unpredictable.  There can exist a situation of no pre-programmed algorithm and/or logic in the human mind.  Yet, so unstructured, yet so structured. 

We shall see, we shall see.