Some anti-money laundering compliance professionals, struggling to meet expanding regulatory burdens with scarce resources, are proposing that their financial institutions charge higher prices for handling transactions and serving customers that present an elevated AML risk. 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. No banker or compliance professional interviewed for this report could name an institution that has employed the strategy, but all...
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.
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.
The report, published by the Boston-based consultancy Aite Group, found that most banks surveyed named AML as their most important compliance issue, beating out data security and consumer privacy issues.