Why Rules-Based AML Still Matters  

While AI and behavioral analytics have introduced impressive capabilities such as adaptive anomaly detection and predictive scoring, they come with challenges: 

Lack of transparency: As “black boxes” pulling heterogeneous and vast data sources, AI models used for AML detection make it difficult for compliance officers to explain why alerts were triggered. 

Regulatory uncertainty: Regulators in the EU and globally are cautious. Some even discourage overreliance on opaque AI without explainability mechanisms in place. 

Operational complexity: Advanced machine learning systems require larger datasets, sophisticated tuning, and skilled data scientists to be effective—and compliant.

For smaller or mid-sized banks, the cost, time, and regulatory risk can outweigh the perceived advantages of AI-only based AML.

Rules-based AML systems work by defining specific criteria—such as transaction thresholds, frequency, or customer attributes—that trigger alerts. What they lack in “intelligence,” they more than make up for in: 

Auditability: Every alert has a traceable rationale. This transparency is a must-have during inspections or regulatory reviews. 

Speed-to-deploy: Rules can be created, tested, and refined rapidly—especially with a modern platform like Natech’s. 

Operational consistency: They deliver predictable results across all customer segments and geographies. 

Control: Compliance teams retain full command over detection logic, tailoring it to local risk exposure and evolving regulations. 

In short, rules-based AML provides the foundation on which AI-based systems can operate safely. 

At Natech, we don’t see it as a choice between rules and AI—we believe in combining the best of both worlds where it makes business sense and delivers clear value to our clients. 

Our AML solution offers: 

• A configurable rules engine tailored to meet EU and national compliance requirements 
• Real-time transaction screening that leverages both static rules and dynamic scenarios 
• Optional AI-driven behavioral analytics, enabling banks to enhance detection capabilities as their needs evolve 

Whether you’re a community bank in rural Italy or a pan-European fintech, Natech empowers you to begin with a strong rules-based foundation and adopt AI enhancements as they bring measurable benefits to your operations. 

One of our clients, Cooperative Bank of Chania, achieved: 

• Full AML compliance under Greek and EU regulation 
• A 40% reduction in investigation time through optimized rules logic 
• Improved audit performance with documented rulebooks and workflows 

Their success wasn’t based on cutting-edge AI. It was grounded in a solid, transparent rules-based framework—built for flexibility and regulator confidence. Read the full case study. 

As financial crime evolves, the temptation to chase complexity is understandable. But complexity isn’t always the answer—clarity is. 

Rules-based AML remains the most reliable, scalable, and explainable layer of any compliance architecture. It’s how small and mid-sized institutions stay efficient and defensible without overextending budget or risk appetite. 

At Natech, we make that simplicity powerful. 

Download our AML Solution Brochure to see how Natech’s hybrid solution blends rules and innovation—helping banks stay compliant, agile, and audit-ready. 

Want to see it in action? Request a demo to explore how we tailor AML to your institution’s unique risk profile.