Banks have been using natural language processing and machine learning applications for years in managing their anti-money laundering and Bank Secrecy Act obligations. But how does the growing adoption of generative AI tools affect how BSA and fraud professionals protect their banks? On the latest episode of the ABA Banking Journal Podcast — presented by Agri-Access — former FDIC official Lisa Arquette shares a regulator’s-eye view of generative AI in the BSA world and how regulators have been approaching the technology for their own work.

Joined by ABA SVP Heather Trew, Arquette also discusses:

• The state of play on banks’ beneficial ownership reporting obligations.
• Other elements of implementing the AML Act of 2020.
• How regulators weigh AML/BSA performance when approving mergers and acquisitions.
• Fluctuations in AML/BSA compliance investments through the economic cycle.
• The low number (1%) of BSA-related examinations at the FDIC that result in enforcement actions.

Register for the ABA Financial Crimes Enforcement Conference, Oct. 14-16 in Arlington, Virginia.

In the wake of the summer’s Genius Act, many banks and nonbanks have announced new stablecoin initiatives. Another digital asset — tokenized deposits — may meet needs similar to stablecoins, but the two asset types have significantly different features based on their underlying designs. On this episode of the ABA Banking Journal Podcast, ABA experts Brooke Ybarra and Yikai Wang discuss:

• The key differences between stablecoins and tokenized deposits.
• Risks that widespread payment stablecoin adoption poses to community bank lending.
• Use cases for payment stablecoins (and areas where hype might exceed value).
• How U.S. banks are approaching stablecoin and tokenized deposit pilots.

Princess Castleberry began her career in risk management in financial services, and the biggest risk she sees today is that “leaders are in a capacity crisis.” Work experience, education and professional networks are undermined by this lack of capacity driven by emotional triggers, she says, which are in turn compounded by a massive wave of societal, economic and technological change.

Now an instructional design expert and leadership speaker, Castleberry discusses how leaders can understand and manage triggers to enhance their capacity to lead with empathy. Castleberry will also be discussing these and other topics — including how to reduce “conflict waste” — at the ABA Annual Convention next month in Charlotte.