What Is RAG? A Plain Guide for AML Teams in the UK and Europe - TechnoXander
AML in the UK and Europe: What Is Retrieval-Augmented Generation? Many AI tools write fluently and cite nothing. In an investigation, that is a problem, because a narrative you cannot trace is a narrative you cannot defend. RAG-powered AI takes a different route: it retrieves your own records first, then writes from them. In short: a generic AI answers from memory. A RAG system answers with references to the cases, policies and guidance it actually retrieved. How it works Retrieve. Find the customer's prior cases, onboarding rationale, policy and typology guidance. Build. Select what is relevant to this alert. Generate. Draft the analysis with citations the analyst can open. What it does not do Retrieval cannot guarantee the record it fetches is right, current or relevant, and a person still reviews and decides. Regulators say the same about accountability: the FCA applies its existing rules to AI, including the Senior Managers and Certification Regime, and ...