Are criminals and government fines driving new requirement methods?

We all have had the business partner who never quite tells us all that we need to know when working on a project but spare a thought for those who design solutions to defeat criminals. In their case, the criminal is not sharing what he does and most design is done in reaction mode.

One area that has got recent focus is Money Laundering. Financial Institutions that end up involved with Money Laundering not only risk loss of money and reputation but fines as well imposed by their governments or even other governments. The situation of identifying money laundering has gotten so out of control that nobody really knows how to define the complete requirements to identify money laundering.

Traditional requirement methods basically do not work anymore. With traditional requirement methods, the Business Analysts identify / capture the business rule and then implement it. Unfortunately the people who make the business rules are not the ones sharing it with us.

Criminals don’t tell us that if they do X, Y & Z then they are money laundering. The criminal’s desire is to float under the radar as normal customers. Their methods for appearing as ordinary customers have gotten so good that the people trying to create the rules after the fact to identify Money Laundering can no longer keep up. This puts Financial Organizations in a bit of a pickle.

Governments have made it so that Financial Institutions cannot just ignore the problem of Money Laundering and hope for the best. After all, if a Financial Institution goes belly up, it can affect a whole country. To avoid this worst case scenario, a government may force a Financial Institution out of business if they are not confident that the institution is compliant with laws. If you want to get business owners / board members to do something about a problem, threatening their business is one solid way to go about it and the governments know this.

For Financial Institutions to get round this issue of not knowing the business rules to implement to identify Money Laundering, they are turning to Artificial Intelligence (AI) to fill in the gap of knowledge. AI will scan through large amounts of data to learn, establish, monitor and update the business rules that identify Money Laundering or Potential Money Laundering. Systems will then implement the rules on the fly to freeze accounts, recover laundered money and notify government and law enforcement agencies.

While I am not a liberty to talk about the specific data being worked with, I can discuss what this means from a Business Analyst perspective. Data scientists and AI engineers will take over the role of capturing and implementing the business rules for identification of Money Laundering into the systems. Previously this was handled by the Business Analyst. However, before you cry about the loss of another piece of work for the Business Analyst role, new opportunities will open up:

  • AI needs data and lots of it. Business Analysts will be recruited to provide data interfaces into the AI machine. At least for the next little while. Eventually, the desire is to end up with more of a Web Crawler approach where the AI establishes new sources of data with little to no human intervention.
  • While AI will be good at identifying that an action is needed it will not be good at implementing the action (at least until we build the fictional “Skynet”). Business Analysts will always be involved with ensuring that the action is communicated to where it needs to be communicated and that any automatic response within an organization is performed . With the way Companies, Governments and Law Enforcement Agencies reorganize themselves on a regular basis it is unlikely that this will ever be a static solution. Given that changing environment, this should keep Business Analysts busy for a while.

What I think will be interesting in the future will be for the Data Scientists and AI engineers to be able to explain the reasoning of the AI for its decision that a particular event is Money Laundering. Eventually it could grow beyond their understanding. I can see a future where Business Analysts will be called upon to get the AI systems to pump out human readable reasoning and maybe that will be a new job task for us all.

In summary, criminals and governments are driving the need for AI to step in and generate IT requirements on the fly. This is to ensure that the criminals are kept in check and that businesses are not shut down by governments for not keeping criminals in check. While some BA roles will be lost around business rules capturing and implementing, other new roles will open up in support of the AI infrastructure and especially the output from the AI solutions.

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