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The high-stakes effort to combat illicit finance

New research from Aite Group and Early Warning® details FIs' efforts to improve the effectiveness and efficiency in their AML detection.

Boston, June 18, 2013 – Financial institutions (FIs) are responding to increased pressure to identify money laundering by improving their detection efforts, according to joint research released today from Aite Group and Early Warning.

At Early Warning’s request, Aite Group interviewed eight financial crime executives from the top 30 U.S. depository financial institutions from May 2012 to June 2012 as well as 11 financial crime executives from eight of the top 30 U.S. depository financial institutions by asset size between March 2013 and April 2013.

AML chartMost FIs report that they feel regulatory pressure to focus on anti-money laundering (AML). At the same time, they face challenges to meet revenue growth goals that impact all cost centers, including compliance. In light of this reality, FIs report that they are continually examining their AML efforts and seeking creative options to improve both their efficiency and effectiveness.

Aite’s research shows that technology is seen as key to these efforts across the financial enterprises surveyed, because it enables not only a holistic view into customer activity, but also facilitates collaboration between fraud and AML groups. This in turn creates opportunities for efficiency while also improving detection and compliance.

“There is a strong need for more dynamic and real-time data-sharing capabilities both within and among financial institutions. Banks should use improvements in technology to eliminate the clunky and often bureaucratic processes that characterize the sharing of data, and become more dynamic and proactive in their AML detection capabilities. Some early movers in the U.S. market are doing this,” says Julie Conroy, Research Director in retail banking at Aite Group.

“This study demonstrates that with the rapid rise and sophistication in criminal activity, it is more critical than ever that financial institutions fully leverage the benefits of advanced analytics, cross-institution collaboration and information sharing,” says Paul Finch, CEO, Early Warning. “We continue to work closely with our customers, developing innovative solutions that incorporate all three benefits, to help them improve their ability to detect complex patterns of money laundering and fraud.”

The results of Aite and Early Warning’s research are included in a new white paper that is available by visiting www.earlywarning.com/leadership.html.


About Early Warning
Early Warning Services, LLC creates actionable intelligence to help financial organizations fight fraud, isolate and manage risk, and remain compliant to protect the entire financial system. The company is owned by five of the largest U.S. banks, but collaborates with financial institutions of all sizes as well as with government agencies, payment processors and check acceptance companies. Early Warning offers a unique view of the financial system that enables clients to manage take appropriate action at the earliest point of detection. For more information, visit www.EarlyWarning.com.

About Aite Group
Aite Group (www.aitegroup.com) is an independent research and advisory firm focused on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, securities & investments, and insurance, Aite Group's analysts deliver comprehensive, actionable advice to key market participants in financial services. Headquartered in Boston with a presence in Chicago, New York, San Francisco, London, and Milan, Aite Group works with its clients as a partner, advisor, and catalyst, challenging their basic assumptions and ensuring they remain at the forefront of industry trends.