Combating Anti-Money Laundering

As criminals and terrorists increasingly resort to more sophisticated measures to channel funds across the globe, anti-money laundering (AML) has become a greater government and business priority. According to the International Monetary Fund (IMF), institutions worldwide have implemented AML policies and programs to: 

• Protect the integrity and stability of the international financial system;
• Cut off resources available to terrorists by decreasing their ability to fund illegal activities; and
• Make it a challenge for criminals to profit from their criminal activities.

The U.S. government is taking AML initiatives particularly seriously. Regulators have levied billions of dollars of fines on banks with compliance deficiencies, highlighted by the recent HSBC money laundering settlement. 

In this RapidInsight™, HfS looks at the challenges financial institutions face as they manage what according to the Federal Bank of New York are $14 trillion in transactions a day passing though the U.S. financial system. To stop criminals from laundering funds, banks must focus on myriad operational processes that require close integration and oversight. Industry executives are therefore increasingly looking to experts, global players and domestic providers, to support the executives’ institutional ALM efforts.