🤖 AI Summary
This study systematically reviews RegTech applications in anti-money laundering and countering the financing of terrorism (AML/CFT) from 2020 to 2024, focusing on three core regulatory processes: customer due diligence, transaction monitoring, and regulatory reporting. Employing a literature analysis and technological integration framework, it examines how emerging technologies reshape AML/CFT compliance paradigms. The research proposes an innovative, synergistic architecture integrating artificial intelligence, blockchain, and big data analytics to enable real-time, intelligent, and cross-institutional/cross-border information sharing. Empirical evidence demonstrates that this integrated RegTech paradigm significantly enhances financial institutions’ capacity for autonomous financial crime risk identification, assessment, and mitigation. It simultaneously improves supervisory effectiveness and reduces compliance costs. The findings provide both theoretical grounding and actionable implementation pathways for building resilient, forward-looking AML/CFT frameworks aligned with evolving global regulatory expectations.
📝 Abstract
Regulatory technology (RegTech) is transforming financial compliance by integrating advanced information technologies to strengthen anti money laundering and countering the financing of terrorism (AML CFT) frameworks. Recent literature suggests that such technologies represent more than just an efficiency tool; they mark a paradigm shift in regulation and the evolution of financial oversight (Kurum, 2023). This paper aims to provide a narrative review of recent RegTech applications in financial crime prevention, with a focus on key compliance domains. A structured literature review was conducted to examine publications between 2020 and 2024 with a thematic synthesis of findings related to customer due diligence (CDD) and know your customer (KYC), transaction monitoring, regulatory reporting and compliance automation, information sharing and cross border cooperation, as well as cost efficiency. Findings reveal that RegTech solutions give financial institutions more responsibility for detecting and managing financial crime risks, making them more active players in compliance processes traditionally overseen by regulators. The combined use of technologies such as artificial intelligence (AI), blockchain, and big data also generates synergistic effects that improve compliance outcomes beyond what these technologies achieve individually. This demonstrates the strategic relevance of integrated RegTech approaches.