Financial institutions’ are continually examining their anti-money laundering (AML) efforts and seeking creative options to improve both efficiency and effectiveness, owing to the increasing pressures on banks’ AML and fraud teams, findings of a new research conducted by the Aite group and Early Warning have revealed.
According to the research, most FIs are "between a rock and a hard place" when it comes to AML compliance.
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Aite Group and Early Warning researched eight financial crime executives at the top 30 US depository financial institutions from May to June 2012, as well as 11 financial crime executives from eight of the top 30 US depository financial institutions by asset size between March 2013 and April 2013.
Technology is a key enabler of collaboration across financial enterprises which not only enables holistic view into customer activity, but also facilitates collaboration between fraud and AML groups thus improving detection and compliance, according to the research results.
Research director for retail banking at Aite Group, Julie Conroy, said: "Banks should use improvements in technology to eliminate the clunky and often bureaucratic processes that characterise the sharing of data, and become more dynamic and proactive in their AML detection capabilities."
CEO of Early Warning, Paul Finch, said: "With the rapid rise and sophistication in criminal activity, it is critical that financial institutions fully leverage the benefits of advanced analytics, cross-institution collaboration and information sharing.
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By GlobalData"We are working closely with our client banks to develop innovative solutions that incorporate all three benefits, and improve our ability to detect complex patterns of money laundering and fraud."
