10
ANTI-MONEY
LAUNDERING
TEN
As government regulations increase and workflow and technology challenges grow, the need for
timely and accurate compliance data is vital. That’s why Dow Jones Risk & Compliance teamed up
with the Association of Certified Anti-Money Laundering Specialists to survey 1,100 Anti-Money
Laundering professionals and gain an unprecedented inside look at the current state of AML affairs.
Take a look at the survey’s findings and benchmark your experiences against those of your peers.
10
10
Roadblocks to Anti-Money Laundering Success
The Most Common Challenges to Compliance
Increased regulatory
expectations
62%
Insufficiently trained
AML staff
49%
Insufficient staffing
in AML departments
40%
Insufficient or outdated
technology
38%
Increasing Difficulties Means Increasing Workload
What’s Driving Workload?
Foreign Account
Tax Compliance Act:
72%
Dodd-Frank Wall Street
Reform and Consumer
Protection Act:
59%
The regulations and recommendations putting pressure on AML departments
70%
of organizations have revamped their client
on-boarding processes or plan to do so due
to new FATCA requirements
Additional Sources of Workload Increase
Compliance teams are becoming an increasingly
important asset within their organizations due to:
67%
Company growth:
New or expanded
government regulations:
37%
37%
Growing realms
of responsibility
55%
Rising regulatory
expectations:
AML Departments Feel the Pain
77%
78%
of compliance professionals are
struggling under the pressure
of a growing workload
of AML departments
expect to see an increase
in workload by 2015
The Big Sweep
Lowering the Threshold on Beneficial Ownership
Identify and understand individuals with ultimate ownership or control of an asset.
Less than 30% of
29%
companies verify beneficial
ownership to a level of 10%
How Companies Verify
Beneficial Ownership
29%
verify using a country
company registry
82%
of companies verify
beneficial ownership as part of the
Know Your Customer (KYC) process
18%
verify through processes
of internal due diligence
69%
of companies verify through
outsourced processes of due diligence
Fraud Detection And Prevention: The Next Big Thing
56%
Types of Data Relevant for Managing Fraud
of AML departments
already handle fraud
detection & prevention
83%
Risk data
77%
Crime typologies
74%
News
Aiming for Accuracy
Fighting False Positives
49%
Average amount of screening
alerts that are false positives
32%
of companies claim 75%+
of alerts are false positives
87%
of companies have a client
screening technology
solution in place
60%
Average time required to clear a false positive:
13 minutes
44%
of these regularly assess their technology,
either quarterly or annually
Why organizations review their screening solutions:
of those familiar with client screening have
lost confidence in the accuracy of data after
experiencing too many false positives
Sensitive Subjects:
Screening For Domestic Politically
Exposed Persons (PEPs)
Too many false positive alerts:
47%
Too many false negative alerts:
40%
Cost issues:
40%
Enterprise technology
consolidation:
34%
3/4
of survey respondents screen domestic PEPs
The PEP screening process generates a large number
of false positives
effective
efficient
up-to-date
Companies must ensure their client data and technology
solutions are effective, efficient, and up-to-date
The primary motivation of review and
change is accurate screening
Cleansing Client Data
Compliance professionals must increase
their focus on the quality of client data
62%
71%
of compliance professionals
have cleansed their customers’
data within the past six months
28%
of AML departments are
involved in data cleansing
conduct
continuous
audits
Exiting Business Segments Due to Regulatory Risk
Have exited business line/segment in past 12 months
Plans to exit business line/segment in the next 12 months
35% have exited for one of both reasons
30% are planning or investigating the possibility of exiting
30%
70%
Planning to exit
Due only to preceived
regulatory risk:
Yes
No
21%
Due to inability to
manage the risk:
Yes
10%
Investigating possibility of exiting
79%
24%
Not planning or investigating exit
Multiple responses allowed
No
FinCEN Impact on Maintaining High-Risk Accounts
38%
MSB or high-risk account closures have reduced
organization’s willingness to maintain accounts:
Yes
70%
No
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70%