More NewsRegulatory Demands and Ambiguity are Greatest AML Challenges, Finds Survey

Regulatory Demands and Ambiguity are Greatest AML Challenges, Finds Survey

A majority (87%) of compliance professionals agree that either increased regulatory demands or the rise of organised financial crime are the biggest anti-money laundering (AML) challenges for banks in Europe and North and South America, according to a survey by Logica, a business and technology service company. In North and South America, more than half of respondents found increased regulatory demands a significant challenge. In Europe, however, the most commonly cited challenge was the ambiguity of sanctions regulations, which 73% agreed or strongly agreed should be more straightforward.

Almost half (45%) of respondents from Europe also claimed that the US Treasury’s Office of Foreign Assets Control (OFAC) bared the sharpest teeth when it comes to AML regulation. Sixty-two percent found the Americas the hardest region to govern in terms of sanctions compliance.

John Evans, director of financial crime solutions at Logica, said: “What’s interesting here is that so many compliance professionals in Europe are more concerned about OFAC than by their domestic regulators and the UN It’s clear that OFAC’s wide geographical reach and heavy penalties are a continuing challenge for banks. Unfortunately, as domestic regulators clamp down further, the compliance headache – and potentially the regulatory ambiguity – looks set to remain a challenge.”

A key regional contrast highlighted by the Logica survey is concern over managing multiple sanctions lists. In North America, only 11% of respondents found this challenging. In Europe, on the other hand, 28% cited this as an issue.

Evans continued: “Banks focusing on North America probably only need to scan payments against the OFAC sanctions lists. Banks in Europe, however, are likely to have to factor in more sanctions lists, such as those from the EU, the UN and domestic ones. Large global banks may have up to 25 lists to manage, so it’s easy to understand why this is such an issue.”

The European survey results also highlighted that 30% of compliance professionals felt their bank could not scale effectively to handle foreign domestic payments traffic.

Related Articles

Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

2m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

3m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

3m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

3m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

3m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

3m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

4m Tasja Botha
FX for corporates: 5 best practices for treasurers

Economy FX for corporates: 5 best practices for treasurers

4m Mateo Graziosi