Why ML-Based AML Systems Fail in Bangladesh and How to Fix Them
Photo by ray rui on Unsplash I still remember the day our AML system crashed due to false positives, causing a backlog of over 10,000 transactions. It was a nightmare. Our team had to manually review each transaction, and it took us weeks to clear the backlog. The problem was not just the false positives, but also the fact that our system was not designed to handle the unique characteristics of the Bangladeshi market. The Hidden Problem In Bangladesh, the BFIU guidelines require us to monitor transactions above BDT 100,000. However, most AML systems are designed with a one-size-fits-all approach, which does not take into account the local nuances. For example, in Bangladesh, we have a large number of microtransactions, which can trigger false positives. Additionally, the MFS threshold monitoring requirements are unique to Bangladesh, and most systems are not designed to handle these requirements. Technical Breakdown & Logic Flow To solve this problem, we needed to design a syste...