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London Bombings Heightens Priority on AML, Fraud Prevention as Basel II Deadline Looms

Specialist banking and finance recruitment consultancy, BlueMax IT, believes that experts in Anti-Money Laundering (AML), Anti-Terrorism and Fraud Prevention will be sought as an ever greater priority by banking and financial institutions for decades to come.

As major and world financial centres come to terms with the events of July 7th, 2005 in London – the medium to long term ramifications have become clear. Capital adequacy will ‘come and go’ – but long term, AML and Fraud Prevention are the watch words. Every institution is keen not to be associated with terrorists, to be thought lax in implementing adequate counter-measures, or to be penalised by regulators.

From a recruitment standpoint most financial institutions have accepted they will need to develop their AML, Anti-Terrorist and Fraud Prevention processes and systems – and will need continue to invest as the threats exist and increase. While the short term capital adequacy resource will likely become a ‘contractor bonanza’ as the Basel II deadline of December 2006 looms – much like Y2K and EMU - AML and Fraud Prevention will be an area of expertise financial institutions will want to recruit and retain on a permanent basis. This will not be lost on either management consulting firms or specialist risk software houses – or indeed, professionals with these skills who recognise their value in the marketplace.

As stated in April 2005, BlueMax IT has recently encountered firms within the investment banking community beginning to ‘swoop’ on the scant supply of AML professionals in both the retail and card processing sectors. While Basel II has been the focus for many financial institutions, the increased expansion of AML regulation is causing a migration of compliance professionals from retail institutions to the more lucrative Investment Banking, Asset Management and Wealth Management sectors. Equally Management Consulting firms - who have recently been recruiting for their regulatory compliance advisory and consulting teams – are offering highly attractive packages. AML and Fraud Prevention professionals are likely to have the longest tenure of employment as these regulations look set to be on-going, far outlasting Basel II and Sarbanes-Oxley (SOX).