September 22, 2011: AML, Anti Money Laundering, the term has become so common among the US based companies basically among the financial institutions today. US financial institutions are finding it very beneficial to entirely depend on Anti Money Laundering programs. When compared to the trends in 2007 the rate of dependence is very high. It has also been noticed that many organizations are increasingly focusing Suspicious Activity Reports (SARs) too.
Now, is it because US companies has lost their trust in outsourcing financial risk management service to the offshore market?
As we know anti Money laundering programs are programs which various banks and financial institutes adopts to lessen the risk involved in handling money. It is a kind of security system followed by the financial institutions to prevent themselves from criminal and frauds. Companies depend on them to become more secure. In the current scenario there is a tremendous hype in the trend as rendering such programs by companies has been raised to almost 57% quarterly. There are even companies which are spending twice they did in the 2007 when compared and this is to tap the new benefits that current AML-Anti Money Laundering programs can provide. Moreover a huge number of the organizations are also generating reports on SARs.
In the current scenario, it could be understood that financial institutions and other banking organizations which are into global business, finds that it is easy for them to monitor customers transactions and other functions across the global by depending on the AML, which many other Business Process Outsourcing (BPO) Units in the offshore might not be able to provide. By outsourcing one might get cost benefits but other services which Anti Money Laundering programs assures might have to be compromised. To be specific there are many advantages depending on the Anti Money Laundering programs, such as standard and policies matching the company profile, know your customer very well and above all automated and time saving process.
While comparing to the benefits the financial institutions can prevail through outsourcing, the home based Anti Money Laundering programs has many advantages. Many institutions feel that the transaction monitoring systems; a facility provided by the AML programs is very efficient and no service providers in the offshore market can deliver such services.
Risk management is an unavoidable factor as far as any financial institutions are concern. Outsourcing risk management service related contract has been put to hold by the US based financial institutions for the time being. As, Anti Money Laundering programs and its benefits are being preferred more, it will be definitely have a very bad impact on the Business process Outsourcing industry in the offshore.