Study Reveals Alternative Fund Managers’ Concerns Over Money Laundering Risks

A recent study sheds light on the growing apprehension among alternative fund managers regarding the risks associated with money laundering. Learn more about the findings.

Alternative fund managers are gearing up to increase their focus on anti-money laundering (AML) management in the coming years, as revealed by recent research conducted by Ocorian. The study found that a significant 73% of fund managers have witnessed a rise in AML risks over the past two years, with 16% reporting a dramatic increase. Only 7% noted a decrease in AML risks, while 20% stated that the risks have remained the same.

Study Reveals Alternative Fund Managers' Concerns Over Money Laundering Risks

Despite the high level of seriousness given to AML management by senior management and the board, nearly 70% of organizations admitted to facing AML fines or sanctions in the last two years. Additionally, 4% revealed that they have been subject to information requests or visits from regulators during the same period.

In response to the growing risks and the current level of fines, almost 90% of the surveyed fund managers expressed their intention to increase their organization's focus on AML management over the next 24 months. Of these, 24% anticipate a dramatic increase, while only 12% expect the focus to remain the same.

The study also highlighted that the majority of respondents believe their staff receive adequate training to mitigate AML risks, although 6% feel that the training is insufficient. Furthermore, around 94% of alternative fund managers have considered utilizing AML software solutions to streamline their internal processes and enhance efficiencies.

The research indicates a growing awareness and commitment among alternative fund managers to strengthen their AML management practices in response to the escalating risks and regulatory scrutiny. With the majority planning to ramp up their focus on AML management, it is evident that the industry is taking proactive steps to address the challenges posed by money laundering.