Transaction Monitoring and Increased AML Training Top List of Compliance Investments for Banks and Broker-Dealers
Survey from Kaufman Rossin reveals how financial institutions are managing BSA/AML compliance programs
Improving transaction monitoring and increasing training are two of the largest investments that Florida financial institutions will make in the next 12 months according to a survey released today from Kaufman Rossin, one of the largest independent accounting firms in Florida.
The survey polled compliance officers at banks and broker-dealers throughout Florida to obtain a deeper understanding of how they assess, improve and sustain their Bank Secrecy Act/Anti-Money Laundering compliance programs. Both groups shared transaction monitoring and training as two of the largest investments they would be making. Bank compliance officers said their third largest investment would involve reviewing Know Your Customer and Customer Due Diligence documentation, while the broker-dealers said the introduction of new policies and procedures would be their third largest investment.
Both banks and broker-dealers also shared similar responses when asked about the top AML issues they will be facing in the next 12 months. They cited fund transfers to high-risk jurisdictions and identification of beneficial owners as two of the top concerns. The third most important issue for banks was the increase in informal foreign current exchange while broker-dealers responded it was the identification of domestic politically exposed persons.
Other key findings of the survey:
- 42% of banks and 45% of broker-dealers plan on increasing spending related to AML compliance over the next 12 months
- Only 65% of banks and 59% of broker-dealers hold formal discussions about AML issues with their senior management or board
- 52% of broker-dealers believe the passing of the “Holding Individuals Accountable and Deterring Money Laundering Act” will have a positive effect on their institution
- 67% of banks have a dedicated or specialized independent BSA/AML testing team
Respondents to the survey were located throughout Florida, with a majority coming from financial institutions in South Florida. The assets under management for respondents ranged from less than $100 million to greater than $1 billion.
