Amman, September 1 (Petra) – Raif Al-Shabab: Dr. Khaldoun Al-Weshah, Deputy Governor of the Central Bank of Jordan, affirmed that artificial intelligence has become an urgent necessity to enhance banking supervision and dismantle money laundering and terrorism financing networks. He pointed out that modern technology now represents a strategic tool to ensure financial stability and strengthen compliance with international standards.

This came during the launch of the forum “Towards Effective Use of Artificial Intelligence in Dismantling Money Laundering and Terrorism Financing Networks,” organized by the Arab Banks Federation in cooperation with the Central Bank and the Jordanian Banks Association, with wide regional and international participation.

Al-Weshah said that AI technologies, such as machine learning and big data analysis, contribute to analyzing financial patterns and early detection of deviations and risks. They also help automate supervisory processes, enhance compliance, detect suspicious links, reduce financial crimes, and effectively deal with international sanctions.

He emphasized that AI opens new horizons to enhance cybersecurity and develop supervisory capabilities, calling for continued regional cooperation and integration of efforts to keep pace with this transformation, aiming to build a safer and more sustainable banking sector.

He explained that the Central Bank launched a regulatory framework for AI uses in the banking sector to employ these technologies safely and effectively, considering governance, risk management, and data protection.

Al-Weshah added that the forum represents an important station for exchanging expertise and building effective partnerships in employing AI in the Arab financial sector, stressing the importance of moving beyond following technological developments to transforming them into participatory frameworks and tools to address banking challenges, achieve financial inclusion, and improve service quality.

Meanwhile, Dr. Wissam Fattouh, Secretary-General of the Arab Banks Federation, confirmed that employing AI is no longer an option but a strategic necessity to develop the Arab banking sector, combat money laundering and terrorism financing, and support sustainable development goals.

Fattouh pointed out that AI has effectively entered the core of the banking experience by providing customized services to customers, facilitating loan procedures, especially for small and medium enterprises, and designing advanced financing solutions for companies.

He explained that AI plays a pivotal role in enhancing compliance and combating financial crimes by analyzing millions of data and detecting suspicious patterns, contributing to reducing operational costs and improving banking supervision efficiency. He cited the experience of JPMorgan Chase, which used AI to process legal and regulatory contracts quickly and accurately.

Fattouh stressed that AI enables directing financing towards green projects and supports the application of environmental, social, and governance standards. He referred to an initiative launched by the Arab Banks Federation in cooperation with ESCWA to mobilize one trillion dollars to support development in Arab countries by 2032.

For his part, Ammar Al-Safadi, Vice President of the Jordanian Banks Association, confirmed that AI is no longer a technological luxury but a necessary tool to enhance the effectiveness of banking compliance and dismantle illicit financial networks, foremost among them money laundering and terrorism financing networks.

He said the Jordanian banking sector is keen to adopt the latest fintech tools, noting that Jordanian banks have made significant investments in digital transformation and strengthened their infrastructure to keep pace with global developments in this field.

He added that the Banks Association has taken on the responsibility of supporting this trend by providing advanced training programs for sector employees and encouraging member banks to use AI-based solutions to improve the effectiveness of control and compliance systems.

Al-Safadi confirmed that the forum represents an important opportunity to exchange experiences with international and regional institutions and discuss best practices in AI to build a safe, advanced banking environment committed to international standards.

The forum discussed the latest developments in employing AI to combat money laundering and terrorism financing, the new opportunities it offers to the banking sector, as well as challenges and risks related to cybersecurity and privacy, and the future of cooperation between banks and technology institutions to enhance compliance and supervision.

–(Petra)