Post by Faizal N.

In 2025, 29% of all SARs filed in Switzerland arrived without an identified predicate offence — requiring MROS itself to determine the suspected underlying crime. That single data point captures the shift the Risk and Compliance/FinCrime function is now living through. MROS received 21,087 SARs in 2025 — a 39.3% YoY increase and nearly four times the 2020 volume. 82 SARs every working day. Industry estimates point to 30,000-40,000 SARs in 2026. The same operational pressure is visible at the UK NCA, Singapore STRO, Hong Kong JFIU, the EU national FIUs, and FinCEN. The obvious response is AI. And in its 2025 Annual Report, MROS itself observed "an increasing decline in the material quality of SARs." Edition 7 of Human in the AI Loop examines four cascading errors that emerge when AI drafts the SAR — hallucinated links, misframed narratives, propagated errors across files, drift in narrative quality — and why the human officer's signature remains the most consequential control in the FinCrime stack. #HumanInTheAILoop #AIGovernance #FinancialCrime #SARQuality #MROS #HKMA #MAS #FINMA #AMLA #RiskComplianceLeadership #SwissBanking #Crypto #Fintech