ThetaRay, a provider of Cognitive AI for financial crime compliance, announced that Kaufman Rossin, an accounting and advisory firm specializing in risk advisory, has completed an independent validation of its AML Transaction Monitoring and OFAC Screening Modules, a process finalized in August 2025.
The validation confirms that ThetaRay’s AI models meet standards for governance, transparency, and robustness, aligning with increasing regulatory expectations for AI-driven compliance systems. This announcement coincides with discussions at Money20/20 USA, a prominent financial technology conference.
The independent validation comes as regulators globally intensify their focus on model risk management. In the United States, FinCEN’s proposed modernization of the Bank Secrecy Act emphasizes dynamic, risk-based compliance and oversight of third-party models. Similarly, the European Union’s recently enacted AI Act imposes strict requirements for high-risk AI applications, including those in financial services, covering aspects like transparency, human oversight, and lifecycle monitoring. Against this evolving regulatory backdrop, independent validation for AI models used in sanctions screening, transaction monitoring, and Know Your Customer (KYC) processes is becoming a necessity for the financial industry.
For financial institutions, this validation provides several benefits. It offers audit-ready assurance, allowing banks and fintechs to reference independent verification of their technology vendor’s AI model when engaging with regulators and auditors. It can also accelerate adoption, as third-party validation helps compliance and risk committees approve AI solutions more quickly, potentially reducing procurement timelines. Furthermore, it ensures regulatory alignment, confirming that AI systems for transaction monitoring, sanctions, and KYC adhere to rising expectations under U.
S. supervisory guidance and the EU AI Act standards. This ultimately provides future-proof confidence, enabling customers to deploy AI knowing it has been tested against model risk standards and is designed to adapt to new regulations and criminal typologies.
Jeff Otten, Chief Revenue Officer of ThetaRay, stated, “Responsible deployment of AI means proving that our systems are not only innovative, but independently validated and trustworthy. That assurance is what regulators demand, auditors expect, and customers deserve.” Jason Chorlins, Financial Services Practice Leader at Kaufman Rossin, added, “Our review confirmed that ThetaRay’s AML and OFAC modules meet rigorous expectations for accuracy, transparency, and governance. This type of validation is increasingly vital as regulators demand accountability and oversight in the use of AI for financial crime compliance.”
ThetaRay intends to extend third-party validation to additional modules, refresh validation cycles regularly, and broaden its assurance frameworks into new jurisdictions, aiming to ensure its AI platform remains consistent with evolving global standards.
ThetaRay specializes in Cognitive AI for financial crime compliance, offering SaaS solutions designed to help financial institutions identify legitimate customers and detect illicit activities. The company states its technology moves beyond traditional rule-based systems, shortening implementation lifecycles and facilitating risk-aware compliance operations. ThetaRay’s platform is currently implemented at various financial institutions, including Santander, Clear Bank, Mashreq Bank, Payoneer, Onafriq, and Travelex.
Kaufman Rossin, established in 1962, is an accounting and advisory firm in the United States. The firm provides audit, tax, business, and risk advisory services. It specializes in risk advisory services for financial institutions, assisting banks, fintechs, and other financial organizations in navigating regulatory environments and strengthening their compliance and risk management programs.
