Research Questions: 1) What are the specific obligations and responsibilities that financialinstitutions may face if the use of AI technologies in AML/CFT is classified as a "High-Risk AISystems" under the proposed EU AI Act?2) How do financial institutions integrate AI technologies into AML/CFT complianceframeworks ensuring regulatory compliance and minimize risks?Purpose: Providing insights and recommendations that can help financial institutions navigatethe intersection of technological innovation and regulatory compliance in the AML/CFTdomain.Method: An exploratory multi-case study was employed within the qualitative approach withdoctrinal legal research to ensure alignment with the study's purpose. The data collection isbased on semi-structured interviews and EU legislations. An interpretive research paradigmand analysis through a thematic analysis was adopted.Conclusion: The research examines AI adoption in financial institutions for AML/CFTcompliance, combining theoretical insights, regulations, and interviews. It underscores theimportance of clear regulations, AI's efficiency in fraud detection, and the need for humanoversight. Outsourcing AI technologies while risk managing, balanced with internalcapabilities, is crucial. The proposed EU AI Act will provide additional regulatory clarity. Thestudy guides financial institutions in enhancing AML/CFT strategies through AI andintegrating technology with human knowledge, and regulatory adherence.