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Combining AML and Fraud Teams at Your Financial Institution: Benefits & Logistics

Anti-money laundering (AML) and fraud functions have historically been siloed into separate departments within financial institutions’ risk management structures. While the functions have many similarities, each team’s suspicious activity monitoring roles differ considerably and require unique analytical skillsets. As a result, AML and fraud departments have rarely collaborated on suspicious or fraudulent activity until recently. However, the recent increase in fraud, much of which is COVID-19 related, has led many institutions to consider the benefits of combining AML and fraud functions for improved investigative results. Over two-thirds of survey respondents in Abrigo’s 2021 FinCrime Industry Survey said that their BSA department also covers fraud.

Learn how AML and fraud can work together more closely to protect the institution from regulatory and reputational risks and hard dollar losses – whether the AML and fraud teams consolidate or remain separate. Understand the logistics of integrating AML and fraud departments, including the impact on procedures, processes, and threshold settings.

Download this whitepaper to learn:

  • Key fraud alert processes and main considerations to review to ensure your financial institution remains safe and sound with a combined AML-fraud team
  • Logistics of combining AML and fraud and actions to take in the consolidation process that will assist with a smooth transition
  • Steps to identify gaps and work more collaboratively when there is little to no crossover between departments

Consolidating AML and fraud departments or boosting collaboration between the two can solidify your risk management program.

Looking for assistance enhancing your BSA/AML program? Learn how Abrigo’s experienced AML Advisory Team can identify your BSA/AML risk and evaluate the effectiveness of the controls in place.

Read more about assessing BSA/AML risks with this BSA/AML Risk Assessment checklist

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