AML De-Risking: An effective method of plugging AML control failures?
Author: Bukola Adisa, CAMS-Audit
AML control failures have gained a lot of press in recent times. There have certainly been widely documented instances of firms that have been subject to regulatory censures as a result of deficiencies identified within their AML control framework. As the penalties and fines have increased, financial institutions have looked for ways to plug these control deficiencies. These have ranged from simple solutions such as hiring extra resources to more complex solutions such as radical changes to operational models and setting up extensive remediation programs.
The new trend called “de-risking” is one of such complex solutions embarked upon by some banks which aim to simplify the business models as well as reduce AML risks by exiting some products or client types or both.