Insights

Anti-money laundering (AML) transaction monitoring

The opportunity for an end-to-end risk-focused transformation.

As the global volume of transactions continues to increase and money laundering techniques become ever more sophisticated, financial institutions face fundamental challenges with regard to anti-money laundering (AML) transaction monitoring, making this an increasingly onerous and expensive task.

Organizations should profoundly revisit their approach to AML transaction monitoring in order to increase the effectiveness of their programs and reduce their mounting costs, while still meeting evolving regulatory requirements. Financial institutions should look at their AML transaction monitoring programs holistically on an end-to-end basis, and structure them with a view to actively target the AML risks they are facing.

This substantial improvement in capabilities and efficiency is essential, and it requires organizations to adopt more advanced analytics, data and technology, in parallel with the necessary enhancements in processes, governance and operating model.

Only an end-to-end risk-focused transformation of AML transaction monitoring will enable substantial improvements in the effectiveness and efficiency of these programs.

Banks in the United States are spending billions of dollars on AML on an annual basis. With the use of more sophisticated analytics and advanced technologies there is a real opportunity to drive a step change in efficiency, reducing or at least containing escalating costs for banks, and at the same time dramatically improving the effectiveness of solutions in order to better identify suspicious activity in the fight against financial crime.
Adrian Murphy, Partner, Oliver Wyman

We have a vision for future AML analytics, which will follow a similar path to analytics in the credit and fraud detection spaces

About Oliver Wyman’s AML and Financial Crime Expertise

Oliver Wyman’s uniquely differentiated offering in the Anti-Money Laundering and Anti-Financial Crime space combines functional knowledge and expertise in processes, analytics, technology and organization.

Our deep understanding of businesses and regulatory requirements, combined with demonstrated capabilities across a broad range of topics, enables Oliver Wyman to develop unique solutions and drive impact in terms of organizational effectiveness and efficiency.