Bunq may use AI to check customers for money laundering

Bunq may use AI to prevent money laundering and terrorist financing. De Nederlandsche Bank had instructed the bank to stop this, but now the Trade and Industry Appeals Tribunal has decided that the decision must be partially reversed.

In the statement states that both bunq and DNB have been partly proved right. The CBb rules that ‘not all violations charged with bunq have been established’. One of the accusations made by DNB is that bunq’s method for screening private customers for the anti-money laundering rules is inadequate. If a private individual registers as a new customer, bunq assigns that customer a standard user profile. This user profile was created on the basis of data analysis and artificial intelligence. This profile would have a low risk of money laundering.

Bunq assumes that the majority of customers behave according to that user profile, the CBd writes. This profile limits, among other things, the amount that can be in the account and the number of monthly payments. DNB believes that with this method bunq does not obtain enough specific information about the new customer to be able to properly assess the risks.

However, the CBd judges that DNB has not been able to prove that bunq’s method is contrary to the law. “The law has open standards and does not prescribe exactly how banks must screen their customers. Bunq has explained in detail in the procedure that and how its method, based on artificial intelligence, works and why it minimizes the risks of money laundering. DNB has not done enough against it.” according to the College. DNB was also unable to prove that bunq obtained insufficient information from business customers who already had an account with the bank.

The bunq considers the accusation that bunq has violated other anti-money laundering rules as proven. This includes the obligation to investigate the source of a customer’s financial resources. bunq has also violated the rules regarding ‘intensified investigations into corruption among customers with an important public function’.