Alternative fund managers’ focus on anti-money laundering (AML) management is set to increase over the next 24 months, according to research.
The research by Ocorian found that almost three-quarters (73%) have seen the level of AML risks increase over the past two years. Of these, 16% have witnessed a dramatic increase. Around 20% shared that the risks have stayed the same; only 7% said they have decreased.
Asset servicing roundtable: “We take AML very seriously”
Despite almost all (99%) saying senior management and the board already take AML management seriously, almost 70% admitted that their organisation has been subject to AML fines or sanctions in the last two years. About 4% admitted they have received an information request or visit from the regulator in the last two years.
In response to these growing risks and the current level of fines they are already facing, almost nine in ten shared that their organisation’s focus on AML management will increase over the next 24 months. Of these, almost a quarter (24%) say it will increase dramatically. Only 12% say it will stay the same.
Why AML compliance is the perfect case for agile software
The study found that the majority of respondents feel their staff receive adequate training to mitigate AML, although there are still 6% who don’t feel the training is adequate.
The study revealed around 94% of alternative fund managers have considered using an AML software solution to streamline their internal processes to increase efficiencies.
Joe French, MD and head of financial crime at Ocorian, said: “As alternative fund managers look to increase their focus on AML, we recommend following three lines of defence approach to protect their businesses – firstly, implement robust procedures, policies and training; secondly, comprehensively monitor these; and finally, review and challenge through an independent audit.”
