Banks’ money laundering costs leap

The cost of fighting money laundering has risen dramatically for banks across
the world, a study has revealed.

According to
KPMG, banks’
spending on anti-money laundering systems and processes has risen by an average
of 58 per cent globally over the last three years. North America and the Middle
East and Africa saw spending increase by 70 per cent or more.

The biggest spending was on transaction monitoring and staff training costs.

The banks said governmental and international regulation needed to be more
effectively targeted. Half believed that while the overall regulatory burden is
acceptable, the requirements need to be better focused, while nearly one in ten
(8 per cent) believe that regulation should actually be increased.

Karen Briggs, Global Head of Anti-Money Laundering at KPMG Forensic, said:
‘Significant numbers say that the regulatory environment is not helping them as
well as it should do – this is clearly a matter of concern, as effective
co-ordination between parties is one of the keys to defeating money launderers.’

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