EU Banks' AML Algorithms Flag Minority Names in 61.8% of Alerts, Audit Finds

Privacy First warned that the EU's new AMLA screening guidelines risk encoding algorithmic discrimination across 27 member states. A Dutch audit found 61.8% of examined suspicious-transaction reports involved people with foreign-sounding surnames. Mandatory algorithmic monitoring of bank customers starts July 10, 2027.

• Dutch suspicious-transaction reports rose from 250,000 in 2020 to over 530,000 in 2024
• Eight major Dutch banks spent about €1.6 billion on AML work in 2024
• 61.8% of 217 audited reports involved people with foreign-sounding surnames
• Algorithmic customer monitoring becomes mandatory for EU banks on July 10, 2027