Benefits of aligning AML and ABC compliance

Michelle Goodsir
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Michelle Goodsir: Managing Director, K2 Intelligence FIN, USA

Journal of Financial Compliance, 2020, vol. 4, issue 1, 25-33

Abstract: Antimoney laundering (AML) and antibribery and corruption (ABC) programmes, by themselves, are important tools in addressing problems that are global in scope. While AML and ABC programmes are distinct, they also entail complementary skills, which reflect the nature of the financial crimes they are designed to prevent. Although AML and ABC programmes have historically operated independently, it no longer makes sense to perpetuate that separation. AML and ABC can, and should, collaborate to enhance their effectiveness. The challenges facing AML and ABC programmes are numerous and sizable. Many financial institutions, particularly domestic regional or community banks, must manage the expense of compliance and limited resources, in terms of skilled staff as well as budgets. Nevertheless, they must recognise an immutable fact: the cost to prevent financial crimes is a fraction of the cost to remediate them. The stakes in AML and ABC have never been higher, but there are ways to mitigate the risks of both today and tomorrow. Institutions can strengthen their compliance programmes by aligning their AML and ABC teams. This paper will discuss the challenges ABC and AML programmes have historically faced, and provide tangible solutions for bringing the two verticals together to create efficiencies and enhance the efficacy of entities’ financial crimes compliance programmes.

Keywords: financial crimes compliance; anti-money laundering; antibribery and corruption; ABC; AML; compliance (search for similar items in EconPapers)
JEL-codes: E5 G2 K2 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jfc000:y:2020:v:4:i:1:p:25-33

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