The Wolfsberg Group has issued a second Statement on Effective Monitoring for Suspicious Activity, setting out a framework for responsibly transitioning suspicious activity monitoring programmes toward greater use of automation, artificial intelligence and machine learning. The statement follows the July 2024 paper that encouraged banks to move beyond traditional transaction monitoring and prioritise effective outcomes. It structures “responsible innovation” around three pillars: transition and validation, balancing model risk with financial crime risk, and explainability to demonstrate transparency in coverage and effectiveness. The framework draws on member banks’ implementation experience across core jurisdictions and on technical workshops with financial intelligence units, policymakers and supervisory authorities. The Wolfsberg Group encourages adoption of the principles across the industry and indicates it will continue engaging with supervisory authorities to support innovation-friendly regulatory environments for financial crime controls.
The Wolfsberg Group 2025-08-27
The Wolfsberg Group publishes second statement setting a responsible transition framework for innovation in suspicious activity monitoring
The Wolfsberg Group released a second Statement on Effective Monitoring for Suspicious Activity, advocating for integrating automation, artificial intelligence, and machine learning in monitoring programs. The framework emphasizes responsible innovation through transition and validation, balancing model risk with financial crime risk, and ensuring transparency and effectiveness, drawing on member banks' experiences and collaboration with financial intelligence units and authorities.