Fortent, risk and compliance specialist, conducted the survey among senior anti-money laundering (AML) compliance officers in North America and Europe. The respondents shared their worries about current financial threats.
The main points of the survey touched regulatory and financial interests of current banking market: new types of payment methods, including mobile banking, pre-paid cards, and virtual world transactions.
Most of survey respondents (52%) cited identity theft as presenting the greatest emerging threat to their institutions in the area of financial crime. 44% stated Virtual world payment systems. 40% are worried about electronic checking. Then go employee fraud (32%) and stored value cards (28%).
Compliance officers place retail banking on the top of money laundering concern (77%), due primarily to high volumes. Referring to new payment products respondents consider payment cards, mobile payments, and virtual world transactions to be of greater regulatory interest over the next five years.The biggest increase in suspicious activity related to money laundering financial institutions see in Eastern Europe (excluding Russia).
Among other tendencies 70% stated the expansion in automation and standardization of compliance systems. Ongoing challenge for financial institutions also represents the frequency of and preparation for exams Bank Secrecy Act (BSA).
Staying ahead of criminals is always challenging, and it is even more so in this economy, says Ed Baum, chief marketing officer, Fortent. But banks know that reducing their exposure to financial crime risk both from a regulatory and a financial perspective is essential to staying in business.
Financial institutions are finalizing their budgets now for next year, and the question on everyones mind is how they are going to tackle these new threats when staff, technology, and training resources are already stretched.
L.D.