THE APPLICATION OF ARTIFICIAL INTELLIGENCE IN COMBATING FINANCIAL CORRUPTION IN THE MIDDLE EAST AND IMPLEMENTATION CHALLENGES BASED ON THE EUROPEAN EXPERIENCE

Аннотация

Purpose: This study builds upon the analytical framework of the reference paper concerning the digital transformation in anti-money laundering (AML) and counter-terrorism financing (CFT) in Europe. It aims to examine the feasibility, challenges, and requirements of implementing artificial intelligence (AI) tools in financial anti-corruption systems in Middle Eastern countries. The authors argue that despite the significant enthusiasm shown by regional countries toward adopting AI in this domain, a notable gap exists between "willingness" and "implementation capacity," rooted in structural, regulatory, and infrastructural challenges. The European experience particularly the proposed EU Artificial Intelligence Act, the FATF San Jose Principles, and the OECD AI Principles can serve as a model for developing a balanced framework that ensures operational efficiency while safeguarding fundamental rights. Design/Methodology/Approach: This research employs a qualitative comparative method, utilizing document analysis, international reports, legislation, and legal and financial studies in the field of AML/CFT digital transformation. The data used include FATF reports, OECD principles, the proposed EU Artificial Intelligence Act, reports from international financial institutions, and case studies from selected Middle Eastern countries. Findings: The findings indicate that: (1) Middle Eastern countries face multiple structural challenges, including poor data quality, lack of specialized expertise, absence of a coherent governance framework, and regulatory fragmentation; (2) the European experience in balancing innovation and the protection of fundamental rights through a risk-based approach offers valuable lessons for the region; (3) successful AI implementation in the Middle East requires simultaneous investment in three areas: technology, legislation, and human resources; and (4) a gradual, pilot-based approach particularly in areas such as transaction monitoring and customer identification can be the most effective implementation path. Originality/Value: This study is one of the first to systematically examine the application of AI in combating financial corruption in the Middle East, drawing on the European regulatory framework while considering FATF, OECD, and EU AI Act principles. It also analyzes, for the first time, the Albanian experience of appointing a "Minister for Artificial Intelligence" within the context of EU accession efforts as a model potentially replicable in the region.