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Insights and Updates on AML Compliance in 2020

Updated: Jun 16


Gone are the days when companies would copy-paste their previous year’s AML guidelines in the next year’s plan. AML compliance has become a dynamic matter in the last couple of years. Therefore, every year brings some new insight and updates regarding AML compliances being practiced all over the world.

In this piece, we are going to talk about how AML practices have evolved in the last year and how 2020 is going to be different from 2019.


More Businesses Will Improve AML Compliance in 2020 for Ethical Edge and Profitability

The Ethisphere Institute is an organization that determines and assesses corporate ethical standards. Its list of World’s Most Ethical Companies, which published last year, indicates that the companies that have earned the tag of Word’s most ethical organization have performed better than their peers in the S&P Large Cap index.

We all know that companies with better compliance regimen generally do better. However, this report by Ethisphere has put an undeniable seal of approval on this fact. Anti-Money Laundering (AML) is an integral part of every compliance measure program. Hence, it will remain at the forefront of any financial organization’s strategy to do better than its competitors.

One research paper has inferred that streamlined anti-corruption compliance programs that entail strong AML measures have a positive effect on the company’s ROE (return on equity). With mounting empirical evidence in favor of AML compliance measures for profitability, more companies will likely expand and streamline their AML departments.


Data Analytics Will Gain More Significance

Since the digitization of financial transactions, AML compliance measures largely depend on data sets. Data and statistical analysis will become more critical this year to detect anomalies that are breaching any clause of the Foreign Corrupt Practices Act. In this backdrop, an AML compliance officer has to be more data-savvy to ensure the required screening results.

New Sectors Will Embrace AML Compliance with New Methods

In 2019, the Financial Action Task Force (FATF) laid out some suggestions for organizations concerning AML compliance measures. Many organizations are going to implement them this year, and for that, they will need an updated and qualified team of AML professionals.

For instance, FATF has directed the legal sector in its member countries, which includes the US, to make sure they identify the UBO (Ultimate Beneficiary Owners) of the entities they are working with. This compliance measure will require detailed AML and KYC screenings. FATF has also asked ventures dealing in virtual assets like cryptocurrency to run similar AML screening on their clients just like any other financial entity.

AML Software Market Will Continue to Grow

SAS Institute, BAE Systems, Verafin, ACI Worldwide, and Oracle Corporation will continue to rule the AML Software landscape. It has been forecasted that the market will expand to $4.9 billion in the next seven years.


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To sum it up, the demand for AML professionals will increase this year as more businesses are going to streamline their compliance programs. Here at ComplyGenics, we can supply experienced AML regulars that help support your organization.

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609-924-3400

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