Independent review affirms ThetaRay’s transaction monitoring and sanctions screening modules meet rising U.S. and EU regulatory expectations.
ThetaRay, a global leader in Cognitive AI financial crime compliance, today announced that Kaufman Rossin has completed an independent validation of its AML Transaction Monitoring and OFAC Screening Modules. Finalized in August 2025, the review confirms that ThetaRay’s AI models demonstrate the governance, transparency, and robustness regulators increasingly expect from AI-driven compliance systems. The announcement will be featured at Money20/20 USA, where the future of finance and compliance technology takes center stage.
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A timely milestone in a shifting regulatory landscape
In the United States, regulators are sharpening their focus on model risk management. FinCEN’s proposed modernization of the Bank Secrecy Act emphasizes dynamic, risk-based compliance programs and heightened oversight of third-party models. In the European Union, the newly enacted AI Act sets out strict requirements for high-risk AI applications, including financial services, covering transparency, human oversight, and lifecycle monitoring. Against this backdrop, independent validation of AI models for sanctions screening, transaction monitoring, and KYC is rapidly becoming an industry necessity.
What this means for financial institutions
- Audit-ready assurance: Banks and fintechs can point to independent validation of their technology vendor’s AI model when engaging with regulators and auditors.
- Accelerated adoption: Third-party validation helps compliance and risk committees approve AI solutions faster, cutting procurement timelines.
- Regulatory alignment: Assurance that AI systems for transaction monitoring, sanctions, and KYC meet rising expectations under U.S. supervisory guidance and the EU AI Act standards.
- Future-proof confidence: Customers can deploy AI knowing it is tested against model risk standards and designed to evolve with new regulations and typologies.
Executive Commentary
“Responsible deployment of AI means proving that our systems are not only innovative, but independently validated and trustworthy,” said Jeff Otten, Chief Revenue Officer of ThetaRay. “That assurance is what regulators demand, auditors expect, and customers deserve.”
“Our review confirmed that ThetaRay’s AML and OFAC modules meet rigorous expectations for accuracy, transparency, and governance,” said Jason Chorlins, Financial Services Practice Leader at Kaufman Rossin. “This type of validation is increasingly vital as regulators demand accountability and oversight in the use of AI for financial crime compliance.”
ThetaRay plans to extend third-party validation to additional modules, refresh validation cycles regularly, and expand assurance frameworks into new jurisdictions, ensuring its AI platform remains aligned with evolving global standards.
