6. High-Impact Customer Actions: Freezing accounts or filing 314(b) requests affects real lives. AI can recommend, but humans must confirm and justify each step. 7. Explaining to Regulators and the Board: No algorithm can sit across from an examiner and defend itself. Your team must translate model logic into plain English, from feature weights to tuning rationales. BEST PRACTICES FOR COMMUNITY FIs To use AI safely and effectively in AML, community institutions should: • Use Explainable Models: Choose vendors that provide reason codes or variable weights so analysts can explain every decision. • Customize for Your Risk Profile: Tune models to reflect your institution’s size, market and product mix. • Keep Humans in the Loop: Let AI prioritize alerts, but reserve final decisions for trained analysts. • Validate Regularly: Conduct independent validation pre-launch, test after any material change and audit frequently. • Invest in Analyst Training: Run workshops on model interpretation and encourage staff to challenge or override model outputs when their gut says, “Dig deeper.” BRINGING IT ALL TOGETHER AI is fast becoming a standard part of AML programs, even for smaller institutions. When deployed thoughtfully, it can cut through noise, surface risk patterns and save staff hours of clerical work. But it must remain a co-pilot, not the one flying the plane. Community banks that strike the right balance will: • Adopt explainable, customizable hybrid systems. • Embed human review at all high-risk decision points. • Validate and document continuously. • Cultivate staff who understand both compliance and AI. Follow these steps, and you can get the best of both worlds: the speed of automation and the assurance of human oversight. Community. Learning. Innovation. Discover What Makes ICBA LIVE Unforgettable San Diego sets the stage for the largest gathering of community bankers in the world. This is the event where connections are made, ideas are sparked, and strategies are shaped. From powerful keynote speakers and immersive learning labs to high-energy networking events and cutting-edge fintech showcases, ICBA LIVE offers something for every attendee. Register Today At icba.org/live MARCH 6-9, 2026 San Diego Convention Center 8 The Community Banker
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