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Resources for Anti-Money Laundering Compliance: Retail Banks on Technology and Staffing Trends

Resources for Anti-Money Laundering Compliance: Retail Banks on Technology and Staffing Trends

Almost 60% of respondents said they will definitely implement new or additional anti-money laundering technology in the next 24 months.

By Eva Weber

Boston, MA, July 16, 2008 – A new report from Aite Group, LLC examines anti-money laundering (AML) budgeting and staffing issues to help banks assess their investment in AML compliance. Based on an Aite Group survey of AML compliance officers conducted in the second quarter of 2008, the report helps banks identify whether their compliance efforts are aligned with those of their peers.

Anti-money laundering compliance comprises a large portion of compliance budgets at retail banks. Having the right staff and technology in place to meet regulatory demands is expensive, but is not a discretionary expense. The challenges of meeting anti-money laundering requirements demand that banks grow their AML compliance budgets and leverage emerging AML technologies. However, there is variability in how banks attack AML issues, because every bank is unique and has its own risks that must be addressed. Budgets for compliance vary greatly, depending on the size and nature of the institution, but also on what departments fund various compliance efforts and new technology implementations.

"The question many banks wrestle with is whether their AML compliance efforts are roughly aligned with the efforts of their peers," says Eva Weber, analyst with Aite Group and author of this report. "Most banks have an implicit goal of doing enough to keep the regulators at bay and protect their reputations while spending as efficiently as possible. Compliance may not be the ugly stepchild during budgeting season, but neither is it a golden child without spending limits."

This 27-page Impact Report contains 20 figures and one table. Clients of Aite Group's Fraud & AML service can download the report.