Strengthening Cybersecurity And Anti-Money Laundering Frameworks To Combat Financial Crimes In The Digital Banking Era

Abstract

This paper discussed how to combine both cybersecurity and anti-money laundering (AML) strategies as a proactive reaction to such new threats in the environment of digital banking. The mixed methodology design with a combination of survey responses of 182 banking practitioners across the world and interviews with experts provides the research with insights on perceptions about the effectiveness of integration, institutional preparedness of adopting artificial intelligence (AI), and major obstacles to implementing AI.Findings indicate that most of the respondents (71 per cent) consider combinations of frameworks to be effective/very effective in improving threat detection and operational effectiveness. Nevertheless, 29 percent of the respondents are experiencing low levels of readiness in adopting and embracing AI integration, whereas 7 percent are not prepared at all. Among the key impediments highlighted by the study, it is possible to distinguish legacy information technology, restrictions on data privacy, low regulatory certainty, and workforce limitations. Moreover, regional differences are identified by analysis, as the Asia-Pacific region has shown the greatest proportion of participants and the comparatively high openness to integration projects.The results point to the necessity of systematic and holistic change of organizations, which integrates the modernization of technology, governance of data, and employee preparation. The following are some of the strategic recommendations outlined in this paper: upgrade of IT systems, investment in privacy preserving technology, cross-functional collaboration and proactive engagement with regulators.

Keywords: AI adoption, anti-money laundering (AML), cybersecurity, digital banking, financial crime prevention, framework integration, institutional readiness, risk management.