If you think AML compliance software is expensive, try non-compliance

The time spent on effectively managing AML compliance can drastically be cut down using the right AML compliance software. This in itself is a large enough saving when one compares the initial and monthly costs of such software to the otherwise higher staff costs.

And yet there is an even higher cost related to AML compliance that some people often overlook.

That of non-compliance.

The direct costs of non-compliance are obvious. Legal repercussions possibly including the suspension of licenses, financial penalties, and related reputational damage. And yet there are other issues that are probably more long-lasting.

To begin with, no person likes to be associated with a failing organisation. Staff demotivation is hard to quantify, yet it can be very harmful. And when this leads to people leaving, as it will undoubtedly do, the cost of attracting new hires is even higher due to the difficulty in finding candidates willing to join a sinking ship.

And in an organisation with dubious AML processes and systems, employee onboarding is a huge challenge.

And then there are the costs of remedying the messy situation to get the organisation on the road to AML Compliance. Because this is the irony is all this. There is no escaping having to get in line with the law, whether this is done immediately or having to do this after a brush with regulators. There will be higher costs to introduce new processes and systems and train employees when this has to be done fast and under the dark cloud of non-compliance.

So if anyone ever says to you that AML compliance is expensive, rest assured they haven’t considered the costs of non-compliance. This is where an effective AML compliance software such as InScope-AML can help.