Tuesday 20 May 2014

AML - the fastest growing risk and compliance segment


Saturday morning in sunny Singapore and reading up on some recent publications. See for instance this Burton-Taylor report on trends in the risk and compliance industry ( http://www.burton-taylor.com/samples/B-T_Global_Risk-Compliance_Competitor-Segment_Analysis_2014-Information_Kit.pdf ) which states “…The Fraud Prevention segment, at USD1.99b and Anti-Money Laundering (AML)/Know-Your-Customer (KYC), at USD271.7m, are the fastest growing, with five-year CAGR of 16.67% and 19.91% respectively…….”
This reflects what we at i-KYC see in our daily practice. The companies we work with usually have their more traditional risk areas – like credit risk, market risk and fraud prevention – well under control. Although AML/CFT is a well-known phenomenon in global financial institutions, many regional and local players still have a long way to go.
The AML/CFT industry as a whole – and maybe we should add FATCA and Anti Bribery and Corruption to that – have developed fast over the last 10 years, but both in awareness, training, organization and tooling there is yet substantial work to be done. To reach the level of professionalism, quality and efficiency of other risk and compliance functions perhaps we can learn more from our colleagues?!
ROlf

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