On May29, 2019, the Roundtable “International Center for Risk Assessment with Application of Hardware and Software with Artificial Intelligence Elements for Financial Monitoring” was held in Moscow on the margins of the 30th Plenary Week of the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG).
In his opening remarks, Director of Lebedev Physical Institute, Mr. Nikolai Kolachevsky, pointed out that, although the EAG IRAC concept is still in its embryonic stage, the ideas of its development, including the conceptual basis, instrumentation framework, ways of engagement of higher education institutions, etc., have already emerged.
The main presentations at the roundtable were made by Head of the Rosfinmonitoring’s Financial Monitoring Information Technology Development Department, Mr. Mikhail Fedorov, and Deputy Director of Lebedev Physical Institute of the Russian Academy of Sciences, Mr. Oleg Ivanov.
In his presentation, Mr. Fedorov emphasized that establishment of the IRAC will propel the cooperation among the financial intelligence units to new heights through application of different types of communications and effective information exchange, including information sharing with the use of external information systems. As explained by the presenter, the IRAC will provide the heads of the financial intelligence units with the up-to-date analytical data reflecting the situation and trends in development of the international financial intelligence exchange and indicating the cross-border financial flows and the associated ML/TF risks. It will also create the enabling environment for undertaking joint targeted preventive actions at the international level with participation of other government agencies of the EAG-member countries.
In the second presentation, Mr. Ivanov elaborated on the issues pertaining to development of technologies at the IRAC planning stage and pointed out that each new technological solution renders all previous solutions obsolete. Mr. Ivanov highlighted that implementation of the IRAC project requires the effective AML/CTF databases compatible in terms of terminology and common understanding of risks, since the current standard databases generally do not meet the requirements for complex search queries.
After the participants asked questions and discussed the presentations, Director of the Federal Financial Monitoring Service, Mr. Yuri Chikhanchin, summarized the outcomes of the roundtable.
“The concept of establishment of the IRAC will shape our future. Unless we learn ourselves and teach our student how to address the challenges discussed today, we will simply lag behind others. As the emerging risks evolve, we will be unable to take necessary preventing measures. We need specialists with expertise in not just economics, law or other areas, but with the global expertise. And we need such specialist right now and, therefore, the issues related to International Risk Assessment Center and the artificial intelligence should become the topics of the undergraduate, graduate and postgraduate theses and methodological recommendations. The International Risk Assessment Center should be operational in 2021 and, hence, we need specialists with versatile expertise capable of pursuing the identified objectives”.