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Artificial Intelligence / KYC Compliance: New Paradigm for IT and Internal Audit?

Question of the day, March 7th, 2019

· Question of the Day

Is it the case that applying Artificial Intelligence resources with regard to KYC compliance, for example, might give rise to a new paradigm for IT folks and Internal Auditors at buy-side firms? These professionals could be required to verify the validity and feasibility of new technologies (such as AI) and any related algorithms. In other words, the IT and IA areas of an asset management firm might have to gear up in order to fulfill their basic responsibilities when “machines” are relied upon to meet certain KYC regulatory requirements – as opposed to a process whereby analysts conduct comprehensive KYC reviews from start to finish and then make necessary regulatory determinations. We at AMT are proceeding to delineate prospective industry-wide questions regarding AI and some of the other various “new” technologies. We ask Asset Managers Tech members and subscribers to please feel free to give us a holler with any further suggestions that would be relevant to KYC, in particular, or to other similar situations involving new technology.


Send your comments or inquiries to Joe Sack . Please note that “Question of the Day” is an initiative of AMT’s Q and A Task Force which is comprised of Heads of IT and other senior executives affiliated with leading investment management firms. George Marootian, Head of IT at Natixis Investment Managers, serves as Chairman of AMT’s Q and A Task Force. If you are a senior executive and technology is expanding your responsibilities, we would very like to hear from you as we regularly hold peer group meetings to generate ideas that an individual industry member can use to formulate solutions that might potentially apply to his or her firm’s unique culture!