According to almost half of financial firms, many of the practical aspects of modern operations are not covered by current anti-money laundering regulations, or they are not clear enough.
Businesses, especially banks, in the region are worried about whether the current and future AML regulations will work. This comes from PwC's EMEA AML Survey 2024.
Hundreds of financial institutions in 40 nations in Europe, the Middle East, and Africa were included in the report. It explains how banks, asset managers, and payment companies are dealing with AML concerns and their views on the regulatory landscape and preparing the financial system for the future.
Financial firms say that the main challenges for AML effectiveness are lack of consistent regulations, finding qualified AML staff, managing data, updating KYC documents, automating processes, and increasing operational costs, which have risen by 14% in the past two years.
Having knowledgeable employees is thought to be the most crucial element in successful AML compliance. 35% of respondents believe that AML teams not using digital tools to identify suspicious activity is hindering their effectiveness.
One-fifth of respondents said the main complaint about regulations is that they are not consistent across industries and jurisdictions. This makes it hard to form partnerships and do business with confidence. As the new AML package is implemented over the next several years, these worries should dissipate within the EU.
Almost two-thirds of respondents are completely sure that their transaction monitoring strategy is appropriate, but 55% say that integrating new technologies is hindered by the maturity of their systems.
36% of people said that the main reason for AML investments is to improve compliance controls, with transaction monitoring being the most important AML topic to focus on.
