Recommendation 104

Several witnesses encouraged the FCA and the PRA to make greater use of regulatory technology, which could help reduce the compliance burden and enhance the monitoring of trends to support supervision. Simon Taylor noted that increased data sharing and standardisation between firms and the regulators would “make a meaningful difference to the issue of APP fraud, mule activity and other activities.” 171 Witnesses suggested that the Government and regulators could provide greater clarity on how firms can utilise new technologies, such as AI, in compliance functions. Soups Ranjan told us that: “it would be helpful if regulators could explain that it is okay for the bank to have AI models that do things like populate a SAR [Suspicious Activity Report] narrative”. 172