Although AML is a well-established compliance regime, it is continuously evolving and becoming more complex. Its importance in managing significant regulatory and reputational risk cannot be under-estimated, even in the post-financial crisis world where banks’ leadership are focused on immediate critical issues such as capital, liquidity and systemic risk.
In our AML survey we explore how AML fits into the changing risk and regulatory landscape facing the financial sector. The survey addresses areas of AML focus and challenge, and shares KPMG’s observations and experiences from advising companies affected by AML regulatory requirements.
The highlights of the survey include the following:
- AML is still on the radar of many banks’ leadership, but is being squeezed by other priorities.
- AML continues to be a significant and rising expense for banks, but many under-estimate how much it costs.
- Politically Exposed Persons (PEPs) and sanctions are a major focus for banks and governments alike, however both are far from straightforward to address.
- Transaction monitoring policies and systems are generally seen as satisfactory, but with plenty of room for improvement.
- Know Your Customer (KYC) data is generally collected and updated both robustly and regularly, but there is great variation in the approach used.