AI-driven supervision is now entrenched in financial services, with 94% of firms using or planning AI detection tools. Vendors tout dramatic false‑positive reductions, but Theta Lake warns these claims often rely on misleading accuracy metrics. The underlying base‑rate problem means even high‑accuracy models generate many false alerts, eroding efficiency and increasing analyst fatigue. Firms must scrutinize validation methods and balance sensitivity against risk appetite to avoid the “boy who cried wolf” effect.
AI is moving from a bolt‑on feature to the core architecture of financial‑crime compliance, as Flagright CTO Madhu Nadig explains. An AI‑native stack requires a standardized data layer, a decision engine that can act within policy controls, and built‑in governance...
Sovos and Label have teamed up to launch a joint CARF compliance solution for digital‑asset platforms, integrating Label’s CARF automation with Sovos’ 1099‑DA and broader tax reporting capabilities. The offering, branded Label CARF + Sovos 1099‑DA, automates onboarding, transaction aggregation, foreign‑exchange valuation...
European RegTech funding jumped 51% year‑over‑year in 2025, reaching $1.1 billion. The market closed with 122 deals, a 10% increase over 2024 but still 55% below the 2021 peak. Large‑ticket rounds resurfaced, with deals over $100 million contributing $117.2 million after none in...