Who benefits from AI in Money Laundering in Europe: The Organised Criminals or the AML Services?
The rapid rise of artificial intelligence (AI) is reshaping many areas of our lives, not least the complex and critical field of financial security. A recent study explores how AI is changing the fight against money laundering across Europe. The research provides compelling evidence on whether AI primarily supports anti-money laundering (AML) efforts or if it inadvertently aids organised criminals by empowering their schemes.
The study examines data from 2017 to 2023 across 19 European countries, using a combination of AI adoption metrics, governance quality indicators, and economic variables. Its findings reveal a nuanced picture: while AI adoption generally improves AML performance, too much reliance on AI can introduce new vulnerabilities that criminals may exploit. This dynamic creates a technological tug-of-war where both sides leverage AI for their purposes, making the battle for financial integrity increasingly complex. One of the key insights from the study is that moderate AI adoption correlates with improved AML effectiveness, as measured by a decrease in the Basel AML Index. However, beyond a certain threshold, the benefits taper off and may even backfire, leading to an inverted U-shaped relationship. This suggests that while AI tools can boost detection and compliance capabilities, excessive or poorly managed AI integration might open doors for criminals to automate and disguise illicit financial activities more effectively.
Governance quality plays a crucial role in this equation. Countries with strong rule of law and effective control of corruption see a more positive impact from AI-driven AML strategies. This finding underscores that technology alone isn’t enough; robust legal frameworks and anti-corruption measures are essential to ensure AI serves as a shield rather than a sword against financial crime. Moreover, public perception and responsible AI governance frameworks significantly influence how successful AI implementations are in real-world AML contexts. Societies that embrace ethical AI principles and maintain balanced regulatory environments tend to harness AI’s benefits better, while those grappling with skepticism or overregulation face hurdles.
This study offers valuable guidance for policymakers, regulators, and financial institutions navigating the evolving landscape of AI in AML efforts. It emphasizes the importance of balanced AI policies that encourage innovation while addressing risks, supported by strong governance and international cooperation.
Lyeonov, S., Hrytsenko, L., Trojanek, R., & Popp, J. (2025). Who benefits from AI in money laundering in Europe: The organised criminals or the aml services?. Human Technology, 21(1), 222–245. https://doi.org/10.14254/1795-6889.2025.21-1.11
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