High False Positive Rates Force Businesses to Exit Verticals
According to a survey by the Dow Jones and ACAMS of 812 anti-money laundering professionals, 47% of industry professionals stated that high false-positive rates hurt their confidence in their AML screening. Further, 40% of surveyed professionals stated that regulatory risk has caused them to exit a business line or segment in the last year. AML screening is necessary to stay compliant with government regulations and avoid large fines and damage to an institution’s reputation. The costs of high false-positives are a less effective compliance department and potentially regulatory action or an exit from the business line.
“Decision makers continue to cite data accuracy as the single most important factor in choosing AML data providers. Well-structured data, depth of content, customer service, conforming to international standards and company reputation are also very important for 60% or more of decision makers. Excessive false-positive alerts remain the key factor for hurting confidence in client-screening data providers.”