Banks and other financial institutions entered 2017 facing an increasingly daunting framework of anti-money-laundering (AML) laws and regulations. During the past several years, regulatory agencies have been aggressively stepping up their enforcement actions, and they’ve levied huge fines for compliance failures.
Recent AML enforcement actions pinpoint the danger of failing to recognize potential risk and respond appropriately. Although the evolving regulatory landscape poses significant challenges to financial institutions, it might also present opportunities. By performing comprehensive risk assessments and establishing a culture of compliance throughout the organization, a financial institution can position itself to better recognize, identify, and avoid potential risk exposure. At the same time, by making full use of technology solutions, a financial institution can develop a better understanding of its underlying customer base and ensure it complies with AML regulations at a lower cost.