Money laundering costs banks more
According to the study carried out by KPMG, the demand for more focused regulation is growing and it costs banks more to train staff. The study reveals that the cost necessary to fight money laundering and terrorist-related funding schemes has dramatically risen for banks all over the world.
The results of the global study involve 224 banks in 55 countries.
KPMG provides information that banks’ resources spent on anti-money laundering systems and processes have risen by about 58% in the world over the last 3 years. The spending of North America, the Middle East and Africa has increased by more than 70%.
According to KPMG, the biggest costs were spent on transaction monitoring and staff training.
The banks suggest that governmental and international regulation has to be more effectively targeted. About 8% of banks consider that regulation is to be actually increased.
It should be noted that the results of the study significantly contrast with what was expected by financial institutions in 2004 when a similar KPMG study revealed that most banks expected costs to rise by 43% over the 3 years.