ThetaRay has announced that Kaufman Rossin has finalised an independent validation of its AML Transaction Monitoring and OFAC Screening Modules.
Completed back in August 2025, the review confirms that ThetaRay’s AI models demonstrate the governance, transparency, and capabilities regulators expect from AI-powered compliance systems.
Nowadays, US regulators are more focused on model risk management, with FinCEN’s proposed modernisation of the Bank Secrecy Act underlining dynamic, risk-based compliance programmes and increased oversight of third-party models. When it comes to the EU, the enacted AI Act provides requirements for high-risk AI applications, including financial services, covering transparency, human oversight, and lifecycle monitoring. Considering this, independent validation of AI models for sanctions screening, transaction monitoring, and Know Your Customer (KYC) is more necessary than ever for the entire sector.
How does this help financial institutions?
The current announcement from ThetaRay and Kaufman Rossin is set to provide financial institutions with:
- Audit-ready assurance, with banks and fintech companies being able to point to independent validation of their technology vendor’s AI model when working with regulators and auditors;
- Efficient adoption, as third-party validation supports compliance and risk committees in approving AI solutions faster, decreasing procurement timelines;
- Regulatory compliance, with the move assuring that AI systems for transaction monitoring, sanctions, and KYC meet the stricter demands under US supervisory guidance and the EU AI Act standards;
- Ability to launch AI knowing that it is tested against model risk standards and developed to evolve with new regulatory requirements and typologies.
ThetaRay intends to extend third-party validation to more modules, improve validation cycles regularly, and scale assurance frameworks into additional jurisdictions, ensuring that its AI platform maintains alignment with worldwide standards. Commenting on the news, representatives from ThetaRay emphasised that responsible deployment of AI means confirming that the company’s systems are not just optimal, but independently validated and dependable, as regulators demand, auditors expect, and customers warrant this assurance.
Furthermore, Kaufman Rossin underlined that its review proved that ThetaRay’s AML and OFAC modules meet expectations for accuracy, transparency, and governance. Additionally, this validation is more fundamental as regulators require accountability and oversight in the use of AI for financial crime compliance.
