UK insights on effectiveness

EMEA AML Survey 2024

Earlier this year, PwC produced the first ever Anti-Money Laundering (AML) survey covering the Europe, Middle East, and Africa (EMEA) regions. This groundbreaking survey reveals how financial institutions in these areas are assessing and improving their AML measures, with the goal of enhancing their efficacy in the future. The survey had almost 400 respondents, 9% of which were from the UK. Building on the insights from this survey, we performed a detailed analysis of the responses specifically from UK-based financial institutions.

Financial institutions in the UK are undergoing considerable changes in line with the shifting regulatory landscape, macroeconomic climate and post-Brexit developments. This is altering how they run their operations, interact with customers, and influence the choice of products and services they wish to provide. At the same time, criminals are also evolving, becoming more advanced in their methods to take advantage of customers and financial systems. Against a backdrop of sophisticated criminals, new regulations and emerging technologies, financial institutions must consider how they can best adapt to tackle AML processes in a smarter, more effective manner.

Key takeaways from our survey include:

Over half (51%) of UK respondents to the survey view current Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) rules positively, finding them helpful. However, UK financial institutions face significant challenges in adhering to these regulations, including rising compliance costs and the complexities of evolving post-Brexit regulations.

65% of UK financial institutions report increased AML/CTF compliance spending over the past 24 months, partially attributable to the evolving regulatory landscape, particularly post- Brexit.

Staff training is deemed the most effective measure against money laundering by 39% of participants. However, despite this, investment in training remains minimal in the UK, with only 22% of payment institutions planning to prioritise it over the next two years.

To manage complexities and enhance efficiency, there is a growing trend towards outsourcing AML/CTF activities, such as KYC onboarding and periodic customer reviews.

Despite existing obstacles, there is a strong interest in investing in AI and digital tools over the next two years. 97% of UK participants plan to allocate part of their budget to these technologies, focusing on transaction monitoring, customer risk assessment, and screening.

Download the full report PwC EMEA AML Survey 2024: UK Insights on Effectiveness

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