Anti-Money Laundering (AML): Nowhere to Hide

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money-launderingAccording to data released from a new KPMG International report, more attention is being paid by senior management in regards money laundering challenges. A majority of respondents stated that money laundering is considered a high risk area within their business risk assessment, further emphasizing how serious these issues are. ‘Anti-money laundering has never been higher on senior management’s agenda, with regulatory fines now running into billions of dollars and regulatory action becoming genuinely license threatening,’ says Brian Dilley, Global Head of the Anti-Money Laundering Practice at KPMG. 84 percent of respondents indicated that the pace and impact of regulatory changes are significant challenges to their operations. ‘Minimum compliance with regulatory obligations is no longer enough to stay out of trouble, when you strive to meet a higher standard’. While the pace of regulatory changes is a big challenge for financial services firms, most organizations are planning to invest more. The top three areas where AML budget has been invested are: transaction monitoring systems; Know Your Customer (KYC) reviews, updates and maintenance; and recruitment.