NEW YORK, Sept. 20 /PRNewswire/ -- U.S. financial institutions will
continue to spend at a brisk pace to combat money laundering over the next
three years, with some banks expecting costs to more than double during the
period, according to a new survey by audit, tax and advisory firm
KPMG LLP.
"KPMG's survey indicates that costs will rise, in part, because of
transaction monitoring required by federal law, and we're finding that most
financial institutions have a strong resolve to meet these standards by
implementing an efficient monitoring system that, with hope, can help thwart
terrorism globally," said Ellen Zimiles, a partner in KPMG's Forensic
practice.
"Because this is a matter of both regulatory compliance and homeland
security, U.S. financial institutions are heeding a clear message: Be more
accountable or risk stiff consequences," she said.
Among the key findings of KPMG's survey are:
-- Encouragingly, a vast majority of respondents agree that the overall
"burden" to keep up with new anti-money laundering regulations is
acceptable, and they want to work with regulators and law enforcement
to make the system operate more effectively.
-- The majority of anti-money laundering budget increases, in order of
priority, will go toward transaction monitoring, staff training,
external reporting requirements, and account-opening procedures.
-- The cost of anti-money laundering compliance rose significantly over
the past three years. Eighty-four percent of executives worldwide and
94 percent in the United States reported that costs have increased as
much as 100 percent since passage of the USA PATRIOT Act.
"Perhaps the biggest challenge for U.S. financial institutions is to
install a more accountable anti-money laundering system without imposing upon
and diluting service to clients and potential customers," Zimiles said.
Zimiles added that it is encouraging to see a majority of financial-
services institutions, especially upper management, embrace their anti-money
laundering responsibilities. "It is also encouraging to see those that use
anti-money laundering compliance information to support other processes, such
as customer profiling and fraud prevention," she said.
Officials at both the International Monetary Fund and The United Nations
Office of Drug Control Prevention estimate that between $500 billion and
$1 trillion in funds is laundered worldwide annually by drug dealers, arms
traffickers, terrorists and other criminals.
KPMG LLP conducted the survey among global financial institutions in 41
countries. For a copy of the summary of U.S. results, or the companion global
whitepaper, please contact Duane Coda at KPMG LLP, 201-505-3460 or
dcoda@kpmg.com.
KPMG LLP is the audit, tax and advisory firm that has maintained a
continuous commitment throughout its history to providing leadership,
integrity and quality. The Big Four firm with the strongest growth record over
the past decade, KPMG turns knowledge into value for the benefit of its
clients, people, communities and the capital markets. Its professionals work
together to provide clients access to global support, industry insights, and a
multidisciplinary range of services. KPMG LLP (http://www.us.kpmg.com/) is
the U.S. member firm of KPMG International. KPMG International's member firms
have nearly 100,000 professionals, including 6,800 partners, in 148 countries.
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