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Introduction to Careers in Anti-Money Laundering

Christian FocacciAML Source, LLCwww.amlsource.com

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Intro to Anti-Money Laundering (“AML”)Anti-money laundering ("AML") is the term used in the financial industry to describe the controls that financial institutions and other regulated entities undertake to prevent, detect, and report money laundering activities.

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Three Stages of Money Laundering

Layering

Placement

Integration

Money laundering is the process of making illegally-gained proceeds appear legal, and typically involves three steps:

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Timeline of AML Regulations

1970 1986 1988 1992 1994 1998 2001

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AML Department Structure

Prevention Detection Reporting

KYC, CDD, and EDD (On-boarding)

Oversight, Policy, and Compliance Officers

AML Technology

AML Alert and Sanction Monitoring

AML Investigation and SAR Filing

While banks operating in the same country generally have to follow the same AML laws and regulations, financial institutions all structure their AML efforts differently

Financial institutions must employ large numbers of employees with varied skill-sets in order to comply with these laws

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AML Job Descriptions

KYC, CDD, and EDD (On-boarding)Professionals conducting Know Your Customer (KYC) and Customer Due Diligence (CDD) are the first lines of defense against money laundering. Their jobs involve collecting the required identifying information on new clients and risk rating the clients based on geography, industry/occupation, product, political status, and reputational risk.

AML Alert and Sanction MonitoringOnce clients make it though the on-boarding stage, the financial institution will usually employ an automated transaction monitoring system to detect any transactions indicative of money laundering or terrorist financing. The alerts generated by these systems are reviewed by teams of analysts to determine the nature of the transactions.

AML Investigation and SAR Filing Depending on the size of the institution, alerts deemed unusual may be further escalated to investigative teams to review the activity and determine if a suspicious activity report (SAR) needs to be filed. Larger financial institutions utilize several investigative AML groups, usually specializing in a specific product or line of business.

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AML Job Descriptions (cont’d)

Oversight, Policy, and Compliance OfficersProfessionals in the above categories focus on making policies for various AML groups and dealing with situations that are new or don’t fit inside the box. They must also be forward thinking and aware of upcoming trends in the industry to ensure that their bank is not exposed to unwanted risk. Whereas on-boarding and investigative positions are considered more production driven, many of the duties of the individuals in the above roles are more theoretical in nature.

AML TechnologyAML Technology is the behind the scenes group that makes many AML jobs possible. They can implement, maintain, and fine-tune the databases that store client information, and the monitoring systems that detect money laundering or block sanctioned transactions. Due to the advances in technology and the very specific skill sets needed, this is probably one of the most in demand positions in AML.

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Focus Your ResumeWhile you may have achieved many note-worthy accomplishments in your career, many of those may not be applicable to an AML position.  Trim the fat on your resume.  Focus on areas that highlight your analytical, investigative, and writing skills. It can also help to have a short, specific, and clear objective section for why you want your new AML position.

NetworkTry to connect with as many people as you can who are currently working in the AML field.  It usually happens that you get opportunities from some of the most unlikely people, so never pass up a networking opportunity. LinkedIn is a great avenue to find AML professionals and networking groups.  These groups are free and many have in-person meetings and seminars periodically. While not free, it may also be a viable option to join a professional association, such as ACAMS or ACFCS.

Consider ConsultingApplying for consultant or temporary positions is an excellent way to gain exposure and experience in the AML field.  Based on many factors, there can be a lower barrier for entry into the field if you come in as a consultant.  In addition to gaining relevant experience, you will also gain numerous of networking opportunities.

Tips for Transitioning into AML

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Average AML Salaries

Years of Experience Salary Range

Less than 3 years Up to$75,000

3 - 5 years $75,000 - $100,000

5 - 10 years $100,000 - $125,000

Greater than 10 years $125,000+

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AML Job Hubs

City #

New York, NY 126

Newark, NJ 14

Chicago, IL 12

Englewood, CO 9

Buffalo, NY 8

Charlotte, NC 8

Columbus, OH 8

Los Angeles, CA 8

San Antonio, TX 8

Tampa, FL 8

Pittsburgh, PA 7

Jersey City 7

Statistics from the AML Source Job Report for August 2013

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Top Hiring Companies

Company #

JPMorgan Chase 79

Citi 46

BNY Mellon 15

Standard Chartered Bank 11

WesternUnion 11

CIT Group 11

HSBC 10

PwC 7

Sovereign Bank 7

Morgan Stanley 6

PNC Bank 6

Bank of America 5

Statistics from the AML Source Job Report for August 2013

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Emerging Areas of AML

Global & high risk investigation groups

FATCA compliance

Regional and community banks

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About AML Source

Christian Focacci, FounderAML Source, LLC

www.amlsource.comcontact@amlsource.com

646-450-0236

AML Source is a highly focused job board and career hub created solely for the AML industry. The website's goal is to provide easy access to only the highest-quality AML positions, as well as career information for all levels of AML professionals.

AML Source also offers sourcing and recruiting services to financial institutions looking to hire qualified AML professionals.