How are You Fighting Increasing Money Laundering Threats?
Financial institutions are the backbone of the American economy, and CSI is committed to providing them the tools they need to grow and thrive—especially in the face of growing money laundering threats.
Money laundering presents an incredible challenge for entities involved in the U.S. financial system, as every onboarded customer could potentially be involved in money laundering and every new transaction processed could represent the flow of laundered money. Picking out which customers and transactions fall into these categories is like finding the proverbial needle in a haystack.
Fraudsters who need to clean their money through the financial system continue to find ways to circumvent AML efforts. As a result, the burden on AML management teams is more challenging than ever as false positives, increasing regulatory scrutiny and limited staffing compound the issue.
Complying with Anti-Money Laundering Regulations
The Bank Secrecy Act (BSA) is the chief legislative weapon the U.S. uses to require participants of the economy to support its constant battle against money laundering. The AML Act of 2020 amends and expands on BSA requirements and is ushering in an era of heightened focus on adopting technology and ensuring institutions embrace a modern approach to AML management.
Although difficult to assign an exact figure, the United Nations Office on Drugs and Crime (UNDOC) estimates the amount of money laundered in one year to be between 2-5% of the global GDP, which is about $2 trillion U.S. dollars. Here are some telling statistics from FinCEN’s AML-related fines highlighting the growing challenge of AML management:
From 2002 through 2022, FinCEN alone has levied almost $4.4 billion in civil money penalties related to issues with AML compliance.
All annual totals over $100 million have occurred since 2010.
The fine totals in six out of the last 10 years exceeded $200 million.
To keep pace with constantly evolving money laundering threats and increasing regulatory pressures, your institution’s AML solution must fit your unique risk profile and effectively identify suspicious cases for investigation.
As a leading regtech partner, CSI offers a variety of financial crimes software to thousands of customers across the globe. WatchDOG® AML—a platform designed with the end user in mind—monitors transaction behavior to recognize anomalies outside of customers’ or members’ normal patterns that aren’t apparent through rules alone. Our flexible platform enables your team to minimize false positives, streamline investigations and file SARs or CTRs directly from the platform.
