Money-laundering flows exceed $1 trillion per year, finds a new KPMG survey. Forty-one banks, out of 224, said they were unable to track cross-border transactions.
The report estimates that the cost of compliance with anti-money-laundering (AML) requirements has risen by nearly 60 percent since 2004 – that's 20 percent more than banks had expected. As the expansion into emerging markets and transnational mergers continue, these costs are likely to grow.
Ted Truman estimates that the probability of conviction for money-laundering in the U.S. is at 6.5 percent. The AML veteran adds that even at 10 percent conviction rate, the returns to money launderers are high relative to the risk.
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