Fraud and anti-money laundering (AML) executives at banks and fintech firms face a speed gap. A survey of 165 fraud and AML compliance executives across 21 countries, commissioned by SAS, found that 86% of institutions report missed links between fraud activity and money laundering. Faster payments leave little time to act. A mule account can move an illicit payment in seconds.
Technology is converging faster than governance. 71% of institutions say detection technology convergence is in progress. Only 13% say the same for governance, policies and organizational structure. Shared technology alone will not close the gap.
Institutions should appoint a clear owner for handoffs between fraud and AML and build the business case on detection quality, not cost. Improved detection ranks first among the ten drivers rated in the study. Reduced operational cost ranks last. Institutions that pair technology convergence with governance convergence can close the gap before the funds are gone.
Clients of Datos Insights’ Fraud & AML practice can download this report.
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