A challenger bank wins AML case against a central Bank. „We made history. The court has paved the way for progress,” the neobank says.

Dutch challenger bank Bunq has hailed a „landmark” verdict in the Dutch courts over the use of artificial intelligence (AI) for anti-money laundering processes, according to Finextra.

The Dutch Central Bank (DNB) had originally prohibited Bunq’s use of AI and machine learning to conduct AML monitoring – a move that led Bunq to sue the central bank.

The court has subsequently sided with Bunq.

According to the bank, the unusual step of suing its banking supervisor was based on the potential „long-term detriment” to its users and the stability of the banking system as a whole had it „yielded to DNB’s anti-money laundering strategy”. 

In a statement, Bunq referred to the DNB’s stance on AML as „antiquated and ineffective” and contrasted it with its use of „modern technology such as AI to mitigate risks”.

„Where DNB insisted on using one-sided reporting from account holders – a system resting squarely on the honesty of fraudsters – Bunq favored the use of technology such as machine learning to fight money laundering effectively,” stated Bunq.