A numeric look at anti-money laundering and its impact on financial crime and the banking industry.
Fifteen years on from 9/11, the use of anti-money laundering efforts has become a key element of disrupting terrorist financing (AML/CFT). Banks have been deputized to assist law enforcement with this effort, through compliance with the Bank Secrecy Act, its implementing regulations and OFAC sanctions programs. Yet, despite significant resources dedicated to stopping illicit financial transactions, perverse incentives have created an AML/CFT regime that is inefficient. The authors in this issue of Banking Perspectives examine the current AML/CFT regime and offer solutions and models that could improve its efficiency and overall effectiveness.Download Full Issue
AML: By The Numbers
Images from the TCH-SIFMA Prudential Regulation Conference, as well as the TCH Spring Leadership dinner.
For The Record: Time for an AML Reboot
Despite significant resources dedicated to stopping illicit financial transactions, perverse incentives have created an AML/CFT regime that is inefficient.
Unintended Consequences of Tighter Liquidity Requirements
The equilibrium federal funds rate, known as r*, has been falling. We’re worried about it, and you should be too.