About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

US AML Requirements Shift Human Capital Focus

Subscribe to our newsletter

A report from Thomson Reuters and the Association of Certified Anti-Money Laundering Specialists (ACAMS) notes that since the launch of US AML requirements for financial institutions in May 2018, firms have shifted human capital focus away from regulatory change management towards more efficient customer due diligence (CDD).

According to the 2018 Anti-Money Laundering (AML) Insights Report, the increased certainty provided by the Financial Crimes Enforcement Network’s (FinCEN) new CDD Rule has had a dramatic impact on the human resources strategy of financial firms. Over a quarter (28%) of survey respondents anticipate an increase in staffing for AML compliance purposes, compared to just 8% in 2017. This focus has resulted in a decrease of regulatory enforcement, with just 22% of organisations experiencing regulatory action compared to 31% the previous year.

Chris Maguire, managing director, Corporate Legal at Thomson Reuters, says: “Developing customer risk ratings is a key component of the CDD Rule. The most commonly used factors to develop the risk rating were customer activity, geographic location and political exposure, with politically exposed persons being the top standard measure of risk, as it was in the 2017 report. Organisations have also improved their collection and speed of gathering necessary information.”

The CDD rule may continue to require substantial time and investment, but improving data management and quality, investing in new technology and process automation, and streamlining business processes are key areas of focus. In these areas, the challenges are increased regulatory expectations, properly trained staff and outdated technology.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: In data we trust – How to ensure high quality data to power AI

Artificial intelligence is increasingly powering financial institutions’ processes and workflows, encompassing all parts of the enterprise from front-office to the back-office. As organisations seek to gain a competitive edge, they are trialling the technology in variety of ways to streamline and empower multiple use cases. Some are further than others along the path to achieving...

BLOG

ACA Insights from FCA 2024 STORS Report (Insider Dealing Dominates)

In March, the UK Financial Conduct Authority (FCA) published its annual breakdown of suspicious transaction and order reports (STORs) filed during 2024. The headline figure – 4,528 STORs received – reflects continued vigilance in monitoring for potential market abuse. While the volume remains largely consistent with previous years, the detailed breakdown offers valuable insights for...

EVENT

Buy AND Build: The Future of Capital Markets Technology

Buy AND Build: The Future of Capital Markets Technology London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Regulatory Data Handbook – Third Edition

Need to know all the essentials about the regulations impacting data management? Welcome to the third edition of our A-Team Regulatory Data Handbook which provides all the essentials about regulations impacting data management. A-Team’s series of Regulatory Data Handbooks are a great way to see at-a-glance: All the regulations that are impacting data management today...