Failure to report suspicious transactions and adhere to AML regulations is increasingly becoming detrimental to Financial Institutions, leading to heavy fines, loss of reputation and legal ramifications. Despite this being a truism, globally penalties for AML non-compliance, sanctions breaches and inadequacies in KYC systems were $5 billion in 2022, amounting to almost $55 billion since the global financial crisis (Deloitte).
The scale of financial transactions coupled with a rapidly changing regulatory landscape calls for a rethink in AML strategies. Regulators and FIs are increasingly demanding AML program effectiveness over ‘tick-box’ compliance in order to build a more secure, resilient financial ecosystem.
Let’s explore the top 10 must-haves that FIs can use to bolster their AML strategy and avoid regulator penalties for AML non-compliance.