Governed Self-Healing in Anti-Money Laundering Systems: Ensuring Compliance through Human Oversight

Abstract

The growing complexity of financial crime has put Anti-Money Laundering systems under unprecedented pressure, most notably concerning excessive false positive rates, dispersed data ecosystems, and operational inefficiencies that sap institutional resources. Self-healing artificial intelligence has presented itself as a revolutionary fix to automate remediation activities and enhance control mechanisms in financial crime prevention architectures. But regulatory bodies call for assurance that automation does not compromise accountability, transparency, or compliance requirements essential to anti-money laundering initiatives. The article presents a complete governance model for self-healing capabilities compliant with Continuous Adaptive Compliance principles, where human monitoring is at the center of all compliance-critical choices. The model outlines structured routes for automated correction—ranging from threshold adjustments to model retuning and anomaly fixes—executing under risk-tiered automation guidelines and audit-proof workflows. Comparative analysis relative to conventional anti-money laundering practices identifies significant reductions in false positives and operating expenses while maintaining human-in-the-loop review oversight for suspicious activity report determinations. The article also considers possible beneficiaries ranging from financial institutions, regulatory bodies, and technology suppliers, focusing on how governed automation improves efficiency and compliance robustness. Wider implications reach to environmental sustainability from the reduction of computational resource usage, economic savings from lower compliance expenditures, and enhanced financial system trust. The article calls for a hybrid model of governance that supports responsible self-healing artificial intelligence adoption in anti-money laundering operations, innovation progression without compromising regulatory integrity, and the importance of human oversight in preventing financial crime.