Banks Waste Billions on AML Compliance

Banks Waste Billions on AML Compliance

Dean Curtis

Managing Director at LexisNexis

Using data, technology and analytics to deliver decisions to manage risk in the most efficient and effective manner. A proven global business leader with over 20 years’ experience in delivering high growth strategies. Possesses a strong track record of driving significant growth in start-up, established and acquired businesses to expand globally.

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Banks Waste Billions on AML Compliance

10.05.2017 08:15 am

Financial services firms are growing increasingly concerned over the mounting costs and reduced effectiveness associated with customer due diligence. Not only do banks have outdated legacy systems, they are plying them with poor quality data when analysing customer risk. This is what generates such high numbers of false positives.

These ineffective systems and processes therefore continue to act as costly barriers to fighting financial crime. However, firms are unwilling to spend millions overhauling these legacy systems until industry confidence in next generation systems’ track record is far higher, and they offer genuine value for money. 

Instead, firms should be looking to continuously improve the quality of their input data, and in effect using their pre-existing data more intelligently. This approach will allow banks to resolve many more AML alerts with fewer people. As it stands, firms are throwing time, money and people at the wrong solution, which is already proving to be a costly mistake.

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