Anti-Money Laundering & The Compliance Bottleneck

In the finance industry, compliance has long operated behind the scenes. It’s essential, yet rarely spotlighted—but that’s changing. As financial crime grows more sophisticated and regulatory scrutiny intensifies, Anti-Money Laundering (AML) solutions are becoming a critical pressure point for banks of all sizes. And the scale of the challenge is hard to ignore as Kroll reports over 70% of financial executives expect financial crimes to increase in 2025.

AML teams stand at a pivotal crossroads: while the broader industry pushes forward with digital transformation and customer-centric innovation, these teams are grappling with mounting operational backlogs (like unreviewed alerts and pending investigations) and aging detection models. Addressing these challenges now is not just a matter of efficiency—it’s a strategic necessity to protect the organization’s reputation, meet regulatory demands, and avoid financial risk.

Let’s talk about why it could be time for a smarter, more scalable solution.

The Growing Weight of AML Obligations

AML isn’t new. But the volume, complexity, and urgency of AML-related work have exploded in recent years with some of our clients facing over 100,000 cases to clear within tight timeframes. Financial institutions are now expected to monitor millions of transactions daily, flag suspicious activity, investigate alerts, and file reports, all while staying ahead of active threats like cybercrime, terrorism financing, and fraud.

And regulators aren’t just watching—they’re enforcing. U.S. federal agencies, for example, require banks to maintain robust governance, oversight, and response mechanisms. When those systems fall short, the consequences can be severe. If a bank doesn’t meet the requirements the Fed is mandating, the fines—and the reputational damage—can be massive.

So, what’s standing in the way? For many AML teams, it’s not a lack of will—it’s a lack of capacity. Let’s take a closer look at the bottleneck.

The Bottleneck: When Alerts Outpace Capacity

The real challenge with AML isn’t identifying suspicious activity—it’s the bandwidth to investigate it. I’ve seen firsthand how AML backlogs can spiral out of control (often exceeding 100,000 cases) and trigger regulatory action. When alert volumes spike and internal teams can’t keep up, it’s not just a workflow issue—it’s a compliance risk. In some cases, regulators have issued Matters Requiring Attention (MRAs) specifically because banks lacked the internal capacity to investigate suspicious activity at scale.

So, what does this mean?

Alert volumes are growing fast, and teams are feeling the pressure. Even the largest institutions are seeing spikes that stretch their current capacity.
Backlogs are a signal, not a failure. They highlight where systems and staffing need to evolve to meet the demands.
Regulators are raising the bar. Agencies are expecting faster, more transparent responses. They’re holding institutions accountable.
Legacy tools are due for an upgrade. Many existing systems weren’t built for today’s pace or complexity, creating an opportunity for innovation.
There’s a clear case for change. Investing in smarter, scalable AML operations or solutions can reduce risk, improve compliance, and build long-term resilience.

Historically, banks have turned to large consulting firms to help clear AML backlogs. These firms offer deep expertise and efficient solutions, but many charge per case, operate independently, and don’t allow for long-term integration of resources.

This is where the bottleneck becomes a business problem. Banks need help, but they also need flexibility, speed, and sustainability.

A Smarter Approach with Scalable Teams

Today’s leading institutions are embracing a new model—one that pairs strategic insight with agile execution. Instead of outsourcing AML work to external firms, some institutions are now building  custom AML task forces that can scale quickly and integrate with internal teams. In fact, banks are seeing faster case resolution, improved quality metrics, and stronger alignment with regulatory expectations.

We’re not just throwing people at the problem. We’re building teams with governance, coaching, and performance metrics baked in. It’s about creating a model that’s scalable, accountable, and aligned with the bank’s long-term goals.

For example, my team deployed 85 investigators, supported by supervisors and AML coaches, and implemented a structured delivery model with KPIs, SLAs, and quality controls. The result? The backlog was cleared in six months, and 92% of the team were converted to full-time employees.

Supporting Complex Investigations

This model for AML solutions isn’t just for high-volume retail cases. It’s also proving effective for complex investigations—the kind that involve counterterrorism, multi-million-dollar fraud, and B2B suspicious activity. It’s a model that’s gaining traction across the industry, from global banks to regional institutions.

We’ve seen this approach work particularly well in high-stakes environments where traditional investigative methods fall short. By bringing in specialized teams—often with backgrounds in law enforcement or intelligence—and structuring projects around clear milestones and measurable outcomes, institutions can resolve complex cases more efficiently and with greater confidence.

The Risks—and How to Manage Them

As with any operational shift, adopting a new AML model comes with considerations. But no model is without risks. When assembling large teams of contract investigators, there can be uncertainty around performance, quality control, and cultural assimilation. And because these teams don’t always sign off on Suspicious Activity Reports (SARs), banks still have to allocate internal resources for final approvals.

With the right structure and oversight, these risks are manageable and often outweighed by the benefits:

Speed to scale: Teams can be deployed in weeks, not months.
Cost efficiency: Fixed-cost models are often far more affordable than per-case consulting.
Conversion potential: High-performing contractors can be hired full-time.
Built-in governance: Supervisors and coaches ensure quality and consistency.

What we’ve learned is that a flexible, scalable professional services model can help banks respond faster, more cost-effectively, and with the kind of domain expertise that builds long-term trust.

Turn Compliance into a Competitive Advantage

In a world where financial crime is evolving faster than ever, the ability to scale, adapt, and respond isn’t just a compliance requirement—it’s a competitive advantage. The institutions that embrace smarter, more agile AML solutions won’t just avoid fines—they’ll build trust, protect their brand, and position themselves for long-term success.

Looking to scale your AML teams? We offer flexible, high-impact solutions that deliver results. Connect with us today to get started!