Risk Assessment and Management in AI for Financial Crime Compliance
Expert-defined terms from the Professional Certificate in AI in Financial Crime Compliance course at UK School of Management. Free to read, free to share, paired with a globally recognised certification pathway.
**AI** (Artificial Intelligence) refers to the simulation of human intelligence… #
These processes include learning (the acquisition of information and rules for using the information), reasoning (using the rules to reach approximate or definite conclusions), and self-correction.
**AI in Financial Crime Compliance** refers to the use of AI technologies, such… #
**AI in Financial Crime Compliance** refers to the use of AI technologies, such as machine learning and natural language processing, to prevent, detect, and respond to financial crimes such as money laundering and terrorism financing.
**Algorithmic Bias** refers to the presence of systematic and repeatable errors… #
**Algorithmic Bias** refers to the presence of systematic and repeatable errors in a machine learning model that result in unfair or discriminatory treatment of certain groups of people.
**Anomaly Detection** refers to the process of identifying unusual patterns or o… #
**Anomaly Detection** refers to the process of identifying unusual patterns or outliers in data that do not conform to expected behavior, which may indicate fraudulent or suspicious activity.
**Anti #
Money Laundering (AML)** refers to a set of laws, regulations, and procedures designed to prevent, detect, and report money laundering and terrorism financing activities.
**Churn Analysis** refers to the process of analyzing customer behavior to ident… #
**Churn Analysis** refers to the process of analyzing customer behavior to identify and predict which customers are at risk of canceling a product or service.
**Data Mining** refers to the process of discovering patterns and knowledge from… #
**Data Mining** refers to the process of discovering patterns and knowledge from large amounts of data using AI, machine learning, and statistical methods.
**Deep Learning** refers to a subset of machine learning that involves the use o… #
**Deep Learning** refers to a subset of machine learning that involves the use of artificial neural networks with multiple layers to learn and represent data.
**Explainability** refers to the ability to understand and interpret the decisio… #
**Explainability** refers to the ability to understand and interpret the decisions made by an AI model, including the factors that contributed to the decision.
**Feature Engineering** refers to the process of selecting and transforming raw… #
**Feature Engineering** refers to the process of selecting and transforming raw data features into meaningful variables that can be used to train a machine learning model.
**Fraud Detection** refers to the process of identifying and preventing fraudule… #
**Fraud Detection** refers to the process of identifying and preventing fraudulent activities, such as credit card fraud, insurance claims fraud, and identity theft.
**Generative Adversarial Networks (GANs)** refers to a type of deep learning mod… #
**Generative Adversarial Networks (GANs)** refers to a type of deep learning model that involves two neural networks, a generator and a discriminator, that are trained together to generate new data samples that are similar to a given dataset.
**Know Your Customer (KYC)** refers to the process of identifying and verifying… #
**Know Your Customer (KYC)** refers to the process of identifying and verifying the identity of customers to prevent financial crimes such as money laundering and terrorism financing.
**Machine Learning** refers to a subset of AI that involves the use of algorithm… #
**Machine Learning** refers to a subset of AI that involves the use of algorithms and statistical models to enable machines to learn and improve from data without explicit programming.
**Natural Language Processing (NLP)** refers to the ability of machines to under… #
**Natural Language Processing (NLP)** refers to the ability of machines to understand, interpret, and generate human language, including speech and text.
**Neural Networks** refers to a type of machine learning model inspired by the s… #
**Neural Networks** refers to a type of machine learning model inspired by the structure and function of the human brain, consisting of layers of interconnected nodes or neurons.
**Risk Assessment** refers to the process of evaluating the likelihood and impac… #
**Risk Assessment** refers to the process of evaluating the likelihood and impact of potential risks, including financial, operational, reputational, and compliance risks.
**Risk Management** refers to the process of identifying, assessing, and priorit… #
**Risk Management** refers to the process of identifying, assessing, and prioritizing risks, and developing strategies to mitigate or eliminate those risks.
**Supervised Learning** refers to a type of machine learning that involves train… #
**Supervised Learning** refers to a type of machine learning that involves training a model on labeled data, where the input data and corresponding output labels are provided.
**Text Analytics** refers to the process of extracting meaningful insights and p… #
**Text Analytics** refers to the process of extracting meaningful insights and patterns from text data using AI, machine learning, and statistical methods.
**Transfer Learning** refers to the process of using a pre #
trained machine learning model as a starting point for training a new model, allowing the new model to benefit from the knowledge and experience of the pre-trained model.
**Unsupervised Learning** refers to a type of machine learning that involves tra… #
**Unsupervised Learning** refers to a type of machine learning that involves training a model on unlabeled data, where the input data is not accompanied by corresponding output labels.
**Virtual Currencies** refers to digital or electronic currencies that are not i… #
**Virtual Currencies** refers to digital or electronic currencies that are not issued or guaranteed by a central bank or government, and are not necessarily tied to a specific country or territory.
**White Box Testing** refers to the process of testing a machine learning model… #
**White Box Testing** refers to the process of testing a machine learning model by examining its internal workings and decision-making processes, in order to identify and address any issues or biases.