Impact of AI on Money Laundering and Terrorist Financing: Emerging Risks And Policy Responses
Terrorist financing and money laundering remain serious international challenges. These seemingly distinct threats are interlinked and feed off each other, thereby reinforcing the challenge they pose individually. The advent of Artificial Intelligence (AI) is revolutionising every field of human endeavour. Early indicators suggest that terrorist financing and money laundering have also been impacted by it. AI functions as a catalyst. It may not change the counters of the threat, yet, it has the ability to enhance it if suitable measures are not instituted by organisations, countries and the wider international community. This paper briefly describes the characteristics and capability of AI as a technology. It explains the concept of terrorist financing and money laundering to explore the linkage between the two. It analyses case studies of AI’s exploitation by terrorist organisations and criminals and its simultaneous employment by intelligence and law enforcement agencies attempting to remain ahead of the technological curve. Finally, the paper suggests policy options to improve the adoption and implementation of AI to limit the threat from terrorist financing and money laundering.
- Vivek Chadha |
- 2026 |










