Reducing the cost of AML compliance
Posted: 17 December 2008 | Source: SAS
Money laundering has far-reaching implications. It makes organized crime pay. It allows drug traffickers and smugglers to expand their operations. It undermines government tax revenue and the financial community in general because it siphons vast sums of money from legal endeavors. The events of 9/11 added yet more incentive to stem the flow of illicit financial transactions.
Many institutions initially made modest technology investments to meet minimum anti-money laundering (AML) requirements. However, this minimalist approach actually increased the total cost of ownership due to inefficient investigations, higher staffing costs, the need for successive technology investments and the fact that little value was contributed to other functions, such as marketing and loss prevention.