As the global volume of transactions continues to increase and money laundering techniques become ever more sophisticated, financial institutions face fundamental strategic, methodological and operational challenges with regard to anti-money laundering (AML) transaction monitoring. These derive largely from process inefficiencies and ineffective methods, and ultimately impact confidence in current AML programs.
This Point of View outlines why financial institutions should rethink their approach to AML transaction monitoring to increase the effectiveness of their programs and reduce their mounting costs, while still meeting evolving regulatory requirements. Institutions should consider 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. Together with the use of more sophisticated analytics and advanced technologies, this will enable a better understanding of threats, rigorous prioritization of efforts, and structuring of appropriate approaches to prevent and identify actual money-laundering activity in the fight against financial crime.