17 January 2018
visit www.avoka.com

Apac banks to increase spending on AML technology - study

19 October 2007  |  5905 views  |  0 cash

Spending on anti-money laundering (AML) technology by banks in the Asia Pacific region is set to rise 39% year-on-year in 2008, according to research conducted by Massachusetts-based research and advisory firm Financial Insights.

Around 60% of the 18 heads of risk management and AML and compliance leads in Australia, India and the Asean region (including Indonesia, Malaysia, Philippines, Singapore and Thailand) surveyed for the study said they still needed to improve areas of their AML regime.

Primary implementations instituted include developing rigorous standards of due diligence for customer identification and acceptance and transaction monitoring.

Accorrding to the study, investments will centre round technological implementation, transaction monitoring and account opening procedures.

Li-May Chew, CFA, senior research manager, Apac risk management advisory service, Financial Insights, says: "Asian banks are becoming less blasé about AML compliance. Whilst interest was previously localised in mature markets, a new wave of enforcement is placing pressure on regional banks in both developed and emerging Asia alike to meticulously observe the doctrine of AML."

Chew says that countries like Australia, India, Singapore and China have introduced wide reaching regulatory changes and that stiff penalties such as fines, temporary closure or even taking away business licences are forcing banks to act to stengthen AML processes.

Of those questioned, 83% currently use some form of vendor application to counter financial crimes. Financial Insights says the research also shows potential focus areas for vendors looking to capitalise on opportunities in the region. Amongst them is the need for customised, 'best-in-class' approaches - such as pattern detection and adaptive profiling - and the need for a range of ancillary services.

"Institutions in these countries are scrambling to demonstrate active development and implementation of adequate AML programmes, and would be the lower-hanging fruits for vendors, providing the most immediate returns relative to cost and effort," says Chew.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Banks' AML compliance costs soar

Banks' AML compliance costs soar

09 July 2007  |  10049 views  |  0 comments
Nigerian banks in rush to implement anti-money laundering software

Nigerian banks in rush to implement anti-money laundering software

02 May 2007  |  9390 views  |  0 comments
US spending on payments outsourcing to hit $4bn by 2010

US spending on payments outsourcing to hit $4bn by 2010

08 May 2006  |  4889 views  |  0 comments
European financial IT spending tipped for growth

European financial IT spending tipped for growth

29 June 2005  |  4285 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.ebaday.comvisit www.fivedegrees.nl

Who is commenting?

Top topics

Most viewed Most shared
Buffett rubbishes cryptocurrencies; South Korea preps exchange crackdownBuffett rubbishes cryptocurrencies; South...
11753 views comments | 16 tweets | 17 linkedin
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
9909 views comments | 32 tweets | 35 linkedin
Crypto mining threatened by power capacity concernsCrypto mining threatened by power capacity...
9678 views comments | 17 tweets | 18 linkedin
Exchanges call for global fintech standardsExchanges call for global fintech standard...
9384 views comments | 17 tweets | 13 linkedin
Wells Fargo to close 900 branchesWells Fargo to close 900 branches
9263 views comments | 14 tweets | 16 linkedin

Featured job

New York, NY - USA (some flexibility on location)

Find your next job