Explainable AML Triage with LLMs: Evidence Retrieval and Counterfactual Checks
Researchers have developed a new framework for anti-money laundering (AML) transaction monitoring that leverages large language models (LLMs) for improved explainability and accuracy. This system treats triage as an evidence-constrained decision process, combining retrieval-augmented evidence bundling with LLMs that provide structured outputs and explicit citations. The framework also incorporates counterfactual checks to validate decisions and rationales against plausible perturbations, aiming to reduce hallucinations and enhance auditability in regulated workflows. AI
IMPACT Governed LLM systems can provide practical decision support for AML triage without sacrificing compliance requirements for traceability and defensibility.