WorkFusion has teamed up with 1LoD to produce a comprehensive Financial Crime Benchmarking Survey & Report, offering fresh insight into how top global banks are managing the operational complexities of anti-money laundering (AML) and know your customer (KYC) compliance.
According to Workfusion, the study delves into four key areas – operating models, staffing, technology, and resources – revealing common challenges and how institutions are adapting in response.
The data highlights just how heavily banks are weighed down by manual processes. A striking 94% of banks pinpoint manual workloads as a major operating challenge, while 80% indicate technology as the area requiring the greatest financial commitment in AML/KYC compliance. Among the most persistent topics is the question of how to “right-size” compliance teams – a task the report describes as being more of an art than a science, with little guidance from regulators.
But what if banks could eliminate the need to right-size altogether? This is where AI promises to be transformative. Rather than constantly adjusting headcount to match surging compliance demands, AI offers a scalable and flexible alternative that can respond dynamically to evolving regulatory pressures and workload peaks.
Several recurring pressures make right-sizing particularly difficult. Alert surges driven by geopolitical sanctions – especially post-2022 with increased action against Russia, China, and Iran – create spikes in workload. Meanwhile, turnover among entry-level analysts is alarmingly high, with some banks experiencing complete annual turnover. Government enforcement actions often require rapid programme overhauls, and fast-growing customer bases demand increased KYC checks – all factors that strain staffing.
AI, particularly pre-built solutions known as AI Agents, can be deployed to carry out specific AML and KYC functions around the clock. These agents help financial institutions scale quickly, improve operational consistency, and avoid the traditional delays of recruitment and retraining. WorkFusion’s AI Agents, in use at 10 of the top 20 US banks, are increasingly recognised by regulators thanks to their strong field performance and built-in machine learning.
Investment in these technologies is accelerating. While overall compliance budgets are under pressure, banks continue to prioritise spending on AML and KYC. According to the report, 80% of banks see AML/KYC tech as mission-critical for identifying risk and maintaining regulatory compliance.
The report offers a critical snapshot of a compliance sector in transition, with AI emerging as a powerful tool to future-proof AML and KYC efforts in an environment of constant regulatory change.
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