AML/CTF/CPF
Industry News
The report examines how AI and deepfakes are being exploited to undermine AML, CTF, and CPF controls.
Key developments include:
➡️ CDD & ID Verification Risks: AI-generated deepfakes are being used to bypass customer due diligence (CDD) and fraud controls such as biometric checks and digital identity verification;
➡️ Synthetic & Hybrid Identities: Criminals are combining real and fabricated identity data to create synthetic identities capable of opening accounts and evading detection controls;
➡️ Scale & Accessibility: Advances in AI significantly lowered barriers to entry, allowing both low-skilled and highly organised individuals to deploy sophisticated fraud and laundering techniques at scale;
➡️ Gambling & Online Platforms: Heightened exposure across fully digital services, including online gambling and gaming platforms, where remote verification and rapid transactions increase ML and fraud risk; and
➡️ Cross-Border Complexity: Global digital onboarding and reliance on remote verification are creating exploitable gaps across jurisdictions, complicating supervision and enforcement.
✅ Firms should review their CDD & ID&V control frameworks, considering AI-enabled impersonation risks to ensure controls adapt in response to the evolving threat landscape.
