Anti-money-laundering (AML) professionals around the world plan to increase their investment in regulatory technology (regtech) in the next three to five years.
This is according to the 2017 global AML survey conducted by financial information firm, Dow Jones Risk and Compliance, in partnership with the Society for Worldwide Interbank Financial Telecommunications (SWIFT).
The annual survey - comprised of responses from more than 500 compliance and anti-money-laundering professionals around the world, assesses the current regulatory environment and the impact of new regulation on international and regional banks' compliance departments.
The research found a large majority (75%) of AML professionals believe the current geopolitical landscape presents new risks and challenges for preventing financial crime at their organisations.
As financial crime risks continue to evolve, notes the research, increased regulatory expectations represent the greatest challenge (69%) for respondents, followed by concerns surrounding increased enforcement of current regulations (50%).
"To address these risks, more than half (54%) of respondents are planning to increase their investment in regtech in the next three to five years, as the majority (59%) say technology has improved their company's ability to tackle AML, know your customer and sanctions requirements," according to the report.
Joel Lange, MD of Dow Jones Risk & Compliance, says: "The shifting geopolitical environment has created an additional layer of complexity for tackling financial crime around the world. As the political and economic landscape continues to impact international trade, data protection and tax cooperation, the need for greater transparency and more effective information sharing across borders is more important than ever."
With de-risking on the rise in Africa, investment in compliance products is becoming increasingly important for African banks, the report adds.
"African banks are aware their compliance policies and processes are increasingly under scrutiny by their correspondent banks," says Denis Kruger, head of SWIFT Sub-Sahara Africa. "Many are already investing in innovative technical solutions to mitigate risk and implement the right compliance policies to protect their business."
Paul Taylor, director of compliance services at SWIFT, says technology can play a key role in providing new and enhanced capabilities that strike a balance between preventing criminal activity, meeting regulatory requirements and containing costs. "The most sophisticated financial crime compliance solutions help mitigate risks and boost efficiency in several ways, from managing workloads to automating payments monitoring and reducing false positives, enabling compliance teams to focus on more strategic risk policy and financial crime prevention work."
The survey further found the greatest AML-related challenge currently facing organisations is having enough trained staff (57%), followed by the reliance on outdated technology (48%).
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