Given the rapid advances in digital technologies and their prominent role in improving legal processes and combating financial crimes, the use of artificial intelligence in these areas has received great attention. This research examines how artificial intelligence can improve anti-money laundering and counter-terrorist financing processes and be effective in asset recovery. While respecting the fundamental rights of individuals is also very important .The primary objective of this research is to analyze the principles set by the Financial Action Task Force, the Organization for Economic Cooperation and Development, and the European Union regarding AI, as well as to explore the impact of digital transformation on combating money laundering and terrorist financing and the role of AI in optimizing these processes.The research methodology adopted is descriptive and library-based, with data collected from various reports, scientific articles, and laws related to the topic. The research findings show that to reduce the risks arising from the use of new technologies in combating money laundering and terrorist financing, it is necessary to create a new legal framework with strong safeguards.