Banks Consider Charging More for Transactions, Customers with High AML Risks

By Brian Monroe

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...