Demand for Skilled Anti-Money Laundering Professionals Rising
Professionals within the financial services sector will focus on subprime market issues and managing anti-money laundering in 2008, according to global survey conducted by Bankersalmanac.com. Apart from immediate concerns stemming from the credit crunch, the research finds that battling money laundering (AML) remains a top priority for financial institutions as new regulation continues to be introduced.
But the price tag associated with anti-money laundering (AML) and counter-terrorism financing (CTF) is high. Total costs of AML compliance is already at tens of billions of dollars annually, and is expected to jump dramatically over the next few years, according to the Association of Certified Anti-Money Laundering Specialists (ACAMS). As a result, anti-money laundering experts are in demand as banks staff up to better monitor transactions and spot suspicious activity, according to executive recruiting firm, A.E. Feldman.
Money laundering involves hiding the source or destination of illegal funds using financial transactions. The act of money laundering effectively eliminates any audit trail, making it appear as though funds have come through legitimate sources.
Banks are required by law to take steps to prevent money laundering, including verification of customer identity, enhanced due diligence and the establishment of anti-money laundering programs across the financial services industry. Financial institutions are required to share information with the government in order to identify and report any activities that may involve money laundering or terrorist activity.
“These are tough times for banks, and they may get tougher,” says Sandy Jaffee, AML expert and CEO of anti-money laundering company Fortent. Ms. Jaffee also notes that there have been large penalties levied by the federal government on banks that have failed to implement adequate anti-money laundering programs, with the combination of fines and remediation costing tens of millions of dollars.
Experience is Key
ACAMS recently released the results of the first Global Salary Survey of AML/CFT Professionals. The group says its findings demonstrate the premium placed on experience and training in all regions of the world. Although compensation was highest in Europe, results show that experience is key. ”Compensation rates all over the globe were high for those with more experience on the job - well into the $300K and $400K’s for the upper levels, even in traditionally lower-paying regions such as Central and South America.”
And as demand for skilled AML professionals rises, staff costs represent an increasing percentage (up to two-thirds) of compliance budgets for financial institutions. John Byrne, Chairperson of the ACAMS Advisory Board, calls AML/CFT an increasingly influential and rapidly growing profession around the world. Byrne adds that the ACAMS certification carries with it a premium of 20% in compensation.
