Fair lending laws require banks to give specific reasons for a credit denial, which is difficult with complex AI models. To navigate this, banks first use traditional models for a decision. If it's a "no," they then use AI to find a way to approve the applicant, avoiding the regulatory disclosure hurdle.

A novel business model for public accountability involves using AI to detect government fraud and then suing the perpetrators. The company operates on contingency, making money only when it recovers funds for the government and receives a 15-30% whistleblower bounty, creating a self-sustaining engine for fighting corruption.

Proving intent for white-collar crimes is difficult. Prosecutors overcome this by charging suspects with the simpler, 'bright-line' crime of bank fraud (e.g., lying on an application). This provides leverage and an easier path to conviction, regardless of the primary alleged crime.

Instead of building bespoke systems, banks buy 'data products' from screening vendors to check against lists like the government's OFAC list. These vendors bundle official sanctions lists with private ones, such as the SPLC's 'Extremist files,' effectively creating a market for outsourced compliance decision-making.

The SPLC's indictment for bank fraud creates a major problem for financial firms that have delegated transaction decisioning to its lists. Compliance departments will find it intolerable to rely on an accused bank fraudster to approve money movements, forcing a scramble for alternative data providers.

The US anti-money laundering (AML) regime intentionally forces criminals into a dilemma: operate outside the banking system or lie to access it. Lying on bank forms is an easily provable 'bright-line' crime, creating a powerful enforcement tool that is simpler to prosecute than the underlying criminal enterprise.

Large-scale fraud operates like a business with a supply chain of specialized services like incorporation agents, mail services, and accountants. While some tools are generic (Excel), graphing the use of shared, specialized infrastructure can quickly unravel entire fraud networks.

Instead of reacting to court orders, Palmer Luckey's Erebor bank preemptively works with intelligence services. This strategy aims to create a fraud-resistant platform, attracting legitimate clients and deterring malicious actors from the start, turning compliance into a competitive advantage.

When an employee leaves with trade secrets, corporations don't just sue. Shkreli claims they hire law firms staffed with former prosecutors who use their connections to trigger a swift criminal indictment, transforming a business dispute into a federal case within days.