American Banker Podcast Why banks keep failing at money laundering
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Jan 7, 2025 Aaron Ansari, an independent consultant specializing in anti-money laundering compliance, shares his expertise on the persistent failures of banks like TD Bank and Bank of America in meeting AML regulations. He discusses systemic issues, including a lack of resources and the need for cultural shifts within banks to prioritize compliance over profit. Ansari emphasizes the integration of technology like AI and automation, while stressing the vital role of human oversight in enhancing detection and maintaining employee trust in combating money laundering.
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TD Bank Case
- TD Bank prioritized profits over compliance, facing billions in penalties.
- Criminals bribed TD Bank employees with gift cards to launder over $470 million.
Discouraging Bribery
- Treat employees well and foster a positive work environment.
- Implement and enforce strong anti-bribery policies with clear gift limits.
Banks' Focus on Deposits
- Banks prioritize deposits and frictionless transactions, sometimes overlooking suspicious activity.
- Incentives for employees can lead to prioritizing deposits over compliance.