RSM anti-money laundering survey of compliance and risk executives

FINANCIAL SERVICES

1

Banks have limited full-time AML employees

had five or fewer full-time employees (FTEs) responsible for BSA/AML

4

2

AML budgets are stable but are expected to rise

6 Banks are using AML software to better identify suspicious activity

5 Time spent on investigations and documentation varies

7 Banks want greater efficiency in the AML process

3

Leveraging outside resources to ease AML burden

$200Kand many expect to increase by a median of 10 percent

banks use software to identify suspicious activity

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outsource BSA/AML internal audits

TRENDS

9 out of 10

TOPAML

LARGE BANK

SMALL BANK

70%OVER

had at least one full-time certified AML professional

3 of 4

of small banks doHALF

large banks

BSA/AML budgets were BSA/AML

budgets at large banks

were

5 TIMES AS MUCHas those at smaller banks

$250K

$50K(MEDIAN)

OUTSOURCING

outsource AML model validation testing

62% 53%of BSA/AML functions is prevalent

Conducting each EDD review

Clearing suspicious activity alerts

TIME SPENT ON:

Median1.0HRS

Mean2.5

HRS

Investigating each escalated alert

Median2.0HRS

Mean5.7

HRS

AML software’s purpose is to make identifying suspicious activity more efficient

larger banks use BSA/AML software to improve the effectiveness of identifying suspicious activity

2IN3

with their BSA/AML function’s effectiveness

95%

EFFECTIVENESS is the main focus of the BSA/AMLfunction satisfied TIME

CONSUMING

but BSA/AML activities are

Banks have highly centralized AML compliance functions

People responsible typically hold the title of CHIEF COMPLIANCE OFFICERCHIEF RISK OFFICERBSA/AML OFFICER

Median2.0HRS

Mean6.2

HRS

�e RSM AML Survey was conducted to help banks benchmark their AML efforts against their peers. �e survey covers AML functional structure, staffing levels and certifications, costs, risk tolerance, performance of key compliance processes, technology and training, and it provides data that enables institutions to better evaluate the performance of their AML departments by comparing themselves to their peers across key metrics.

$1B-<$20B in assets

$500M-<$1Bin assets

IN THE BANKING INDUSTRY