ATLANTA — Today, LexisNexis® Risk Solutions released its study on the True Cost of Anti-Money Laundering (AML) Compliance in the United States and Canada, which revealed the spend for U.S. and Canadian financial services exceeds $31.5 billion per year. The survey queried 140 decision-makers who oversee FCC compliance processes including but not limited to customer onboarding, identity verification, investigations, watchlist screening and transaction monitoring.Key Findings from the Report
“U.S. and Canadian financial firms effectively leveraging compliance technologies spend an average of $78,000 annually per full time compliance employee versus $140,000 for those who don’t,” said Daniel Wager, vice president, global financial crime compliance strategy for LexisNexis Risk Solutions. “This is significant, as human resource costs tend to trend upwards year-over-year and most sharply when firms are faced with increasing regulatory pressure or potential enforcement.”
Wager continued, “As compliance regulations grow in complexity, North American financial firms will be challenged to protect their reputation and avoid costly enforcement actions. The common reaction of adding more labor resources will not result in a profitable long-term solution, but instead often leads to diminishing returns, especially if investments in technology don’t keep pace. Combining the right core data quality with technology results in cost savings, more effective compliance and smoother customer acquisition. With faster due diligence, reduced friction and a more comprehensive understanding of customers, financial institutions often see a reduction in financial crime over the long term.”
Download a copy of the report here.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers across industries. For more information, please visit www.risk.lexisnexis.com and www.relx.com.