Insights: Consolidating AML and Fraud Operations, Doing More With Less

By Troy M. La Huis, CAMS, and Alan Abel, CPA, CFE

A stalled economy and expanding compliance requirements are prompting many financial institutions to seek innovative ways to improve their compliance functions without increasing – or even while reducing – their costs. One approach a growing number of financial institutions are considering is combining their anti-money-laundering (AML) and fraud monitoring operations into a single "financial crimes" unit to achieve greater operational efficiency. Managers of financial institutions should consider several factors when determining if combining these operations makes sense for them. The Pros and Cons of Consolidation The conventional reasons for forming a consolidated financial crimes unit are to more efficiently and...