A new survey conducted by First AML indicates that only 49% of c-suite executives are somewhat confident about their company’s anti-money laundering (AML) processes. The research involved 250 UK-based c-suite executives, revealing that many senior leaders are concerned about their company's AML compliance, despite budget cuts in this area.
The notion of executive responsibility for AML compliance is widely supported amongst respondents, with 75% believing that c-suite executives should be personally accountable. Concerns regarding the financial implications of non-compliance are evident, as 79% expressed worry about the financial consequences for their company - of which 28% are significantly concerned.
Despite these figures, 39% of surveyed executives reported reducing their AML budgets in 2024 compared to previous years. This apparent contradiction comes at a crucial time, with the arrival of the Economic Crime Manifesto II. This new document proposes mandating senior executive liability for economic crimes committed due to their negligence or failure to prevent them. Although no official regulations have been put in place yet, the emphasis on executives intensifying their efforts against economic crime is clear.
Bion Behdin, co-founder and CRO of First AML, commented, “The c-suite is worried about compliance, so it's time to put their money where their mouth is. [...] Given they can see the benefits of compliance, 2024 should be the year that the c-suite prioritises anti-money laundering in their organisations." The survey further revealed that 67% of executives feel strong compliance demonstrates a positive market reputation, while 22% believe it has a significant positive impact.
The research indicates that 99% of those surveyed have plans to change AML processes in 2024. These alterations include increased investment in technology (47%), additional investment in staff (44%), and more extensive training schemes (42%). However, with tightened budgets looming, organizations will have to achieve more with less. These findings echo the results of a previous survey conducted by First AML in September 2022, which showed 73% of financial services companies were making AML a top priority, even as 23% were considering reducing budgets.
The data also revealed that many c-suite executives are discussing AML strategies, risks, and processes during board or senior-level meetings. However, the frequency of these discussions varies, with 44% of executives discussing it quarterly, and 31% bi-annually or less often. Behdin expresses the importance of these discussions, saying, "C-suite executives are spinning a lot of plates, and having a clear overview of their company’s AML landscape and response is integral to avoiding fines and reputational damage.”