Anti-money laundering ranks as the top compliance concern for banks, and is cited as an area where firms see room for improvement, according to a survey released Monday. The report, published by the Boston-based consultancy Aite Group LLC, found 15 of the 17 banks surveyed named AML as their most important compliance issue, beating out data security and consumer privacy issues. Banks named AML as both their greatest financial and reputational risks. Banks also said they needed to improve their AML performances. Of those surveyed, 13 percent said that their compliance performance needs improvement, with 44 percent of institutions saying...
If March's record penalty against Wells Fargo & Co. has reminded compliance departments of the bite of anti-money laundering regulatory fines, it has also been a reminder of something else. With acquisitions come problems.
Banks spent an average of 63 percent of their compliance budget on internal staff in the second fiscal quarter of 2008, according to a survey released Wednesday. Of the remaining money spent on anti-money laundering compliance, banks spent 31 percent on technology and six percent on consultants.
As more and more financial institutions rocked by the deepening mortgage crisis announce painful job cuts, anti-money laundering compliance officers must take quick action to protect their departments, compliance consultants say.
Adjusting prices to account for money laundering risk is akin to charging a customer with a poor credit history a higher interest rate, say both compliance consultants and banking executives, who consider the strategy a logical extension of the industry shift to risk-based AML programs.