– 98% have plans to change anti-money laundering processes in 2024
– 38% had anti-money laundering (AML) budgets cut in 2024 in comparison to 2023, with New Zealand impacted more than Australia
– Australian companies more likely to think c-suite should be held responsible for non-compliance than in New Zealand
SYDNEY, April 30, 2024 /PRNewswire/ — Over half (53%) of c-suite executives in Australia and New Zealand only feel somewhat confident about their company’s anti-money laundering (AML) processes. That’s according to a survey by First AML, the anti-money laundering scaleup.
The survey found that the financial consequences of non-compliance on their organisation is a concern for 78% in Australia and 64% in New Zealand. In fact, 30% of those surveyed in Australia are extremely concerned, compared to only 18% in New Zealand.
Reputational risks
When asked whether a strong commitment to compliance impacts the company or firm’s reputation in the market, 84% in Australia feel it brings a positive impact, but only 42% in New Zealand feel the same. Similarly, 34% in Australia feel it brings a significant positive impact, versus just 16% of c-suite executives in New Zealand.
On top of this, Australian executives are more likely to think the c-suite should be held responsible for non-compliance (82%) compared to just 56% in New Zealand.
Milan Cooper, co-founder and CEO of First AML, commented: "Australia is going through a transformative period, and these survey findings should be a call to arms for a Tranche 2 decision. New Zealand is deeper into its journey, but that doesn’t mean the c-suite should rest on its laurels when it comes to anti-money laundering processes."
2024 budget changes
The survey also found that 38% had anti-money laundering budgets cut in 2024 in comparison to 2023, yet 95% of c-suite executives are worried about their company’s ability to be compliant with new and upcoming anti-money laundering regulations.
The main reasons for this concern include limited resources (46%), limited budgets (30%), and limited staff knowledge (41%).
Bringing AML to the boardroom
The majority of c-suite executives discuss anti-money laundering strategies, risks, and processes discussed during board or senior level meetings quarterly (43%). In New Zealand, 36% discuss it bi-annually or less frequently, compared to just 28% in Australia.
On top of this, the majority (43%) receive reports, or have meetings, with their ALMCO or compliance officers about compliance quarterly, with 44% in New Zealand and 32% in Australia receiving them bi-annually or less frequently.
Almost all (98%) have plans to change anti-money laundering processes in 2024. Sixty percent of Australian respondents are planning to invest in technology, compared to just 30% in New Zealand. Collectively, both Australia and New Zealand are also planning more investment in people (41%) and more investment in training (35%).
"While the Australian market is further behind other countries and regions for implementing anti-money laundering processes, it is able to learn from the missteps made by others," Cooper continued. "With access to both cutting-edge technology and hindsight, Australia can get it right first time. Investment in tech – in addition to people and training – will be crucial for this success."
About First AML
First AML is an all-in-one AML platform. It powers thousands of compliance experts around the globe to reduce the time and cost burden of complex and international entity KYC. Our enterprise-wide, long term approach to the CDD data lifecycle addresses time and cost challenges while improving the customer experience and minimising reputational and security risks.
This content was prepared by our news partner, Cision PR Newswire. The opinions and the content published on this page are the author’s own and do not necessarily reflect the views of Siam News Network
