The importance of governance in artificial intelligence and machine learning technology
Abstract
Financial institutions increasingly deploy artificial intelligence (AI) and machine learning (ML) solutions to enhance compliance processes. While this trend promises significant efficiency gains, it also introduces complex governance challenges that compliance executives must effectively address. Drawing on regulatory developments, technical considerations and industry best practices, this paper presents the process to develop a comprehensive governance framework for mitigating risks associated with AI/ML implementation in compliance functions. This paper concludes with a forward-looking perspective on evolving governance requirements as AI/ML technologies continue to transform financial compliance. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
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Author's Biography
Stacey Chieng has been the Chief Anti-Money Laundering (AML) Officer at Interactive Brokers since 2022. She joined Interactive Brokers in 2020 as the Head of Sanctions and also served as the Deputy AML Officer. Before joining Interactive Brokers, she was the Vice President of Economic Sanctions at U.S. Bank, where she helped develop a robust sanctions compliance programme. Stacey began her career at Protiviti, providing internal audit and risk and compliance consulting services to financial institutions specialising in AML remediations. She has a BSBA degree in accounting and a master’s degree in accounting from Washington University in St. Louis. Stacey has her Certified Anti-Money Laundering Specialist (CAMS) certification, FINRA 7 and 24 licences and a Certified Public Accountant (CPA) (inactive) licence.
Sourit Dasgupta is the Global Head of Model Risk and Analytics at Interactive Brokers and orchestrates the firm’s efforts to manage financial crimes risks through a sophisticated blend of technology and expert-driven controls. With over 13 years dedicated to combating financial crimes, Sourit has established himself as a leader in designing and deploying comprehensive, global risk mitigation frameworks. His expertise lies in creating sophisticated detection systems and preventative controls that effectively identify suspicious activities across diverse markets and jurisdictions, ultimately preserving the integrity and reputation of the firm’s worldwide financial network. His passion for technology drives his current initiative to integrate responsible use of artificial intelligence, aiming to enhance the efficiency and effectiveness of financial crime controls in the competitive brokerage industry. Sourit specialises in governance, risk management, transaction monitoring, trade surveillance and data science, consistently focusing on building resilient compliance frameworks. Before joining Interactive Brokers, Sourit worked at Deloitte and Ernst & Young (EY), where he served as a key financial crime adviser. In these roles, he helped multiple financial institutions develop and elevate their compliance programmes, including those under remediation by the USA and international regulators. He has led initiatives that significantly improved software processes to combat financial crimes more effectively. This balanced perspective drives his ongoing mission to develop next-generation financial crime solutions that deliver security and confidence in an increasingly complex risk environment.
