ACAMS 2024: Insights and Takeaways for the Fincrime Industry
As the dust settles from another exciting and informative ACAMS Las Vegas conference, I’ve had time to reflect on some of the key insights and takeaways from the sessions I attended. This year, the focus was clear: institutions must be agile and collaborative to thrive in an ever-evolving regulatory landscape. The discussions were packed with valuable lessons for everyone involved in fighting financial crime.
1. Active Participation in Regulatory Development
One of the recurring themes was the need for institutions, especially smaller ones, to actively engage in regulatory processes. The big message from regulators was simple: your feedback matters. Particularly in areas like Customer Due Diligence (CDD), staying involved and ensuring that rules work for your institution is crucial. I think we can all agree that practical, implementable rules benefit everyone—and that’s where the conversation should continue.
For those of us at Velocity, it’s a reminder that innovation isn’t just about tech but also about working closely with regulators to ensure new systems can adequately address risks. The OCC’s message that institutions don’t need to run parallel systems for new technologies, as long as they prove they can handle risks, was refreshing.
2. Resource Allocation and the Risk-Based Approach
One of the biggest challenges that came up during the sessions was how smaller institutions often struggle to allocate enough resources to AML and Countering the Financing of Terrorism (CFT) programs. It’s easy for larger institutions to dedicate teams and budgets to compliance, but for smaller players, that’s not always the case. The takeaway? Resource allocation must align with a risk-based approach. In other words, it’s not just about throwing money at the problem—it’s about focusing on high-risk areas and ensuring those areas receive the right attention. Smaller institutions should prioritize resources to ensure compliance without spreading themselves too thin.
3. Adapting to FinTech Partnerships and Third-Party Risk
As the landscape shifts and financial institutions increasingly partner with FinTechs, we’re seeing a rise in third-party risk management challenges. The sessions highlighted how critical it is to stratify risks across different FinTech relationships. This isn’t one-size-fits-all. Institutions need tailored approaches based on the types of services they’re integrating. The need for clear policies—especially regarding onboarding and termination of these high-risk services—stood out. And as the customer base grows rapidly, along with international transactions, community banks in particular have to stay vigilant to avoid risk exposure. I
walked away thinking about how Velocity can better position its technology to ease this burden, helping clients streamline third-party risk assessments while maintaining robust compliance.
4. Cybersecurity and Data Management are Everyone’s Problem
It wasn’t surprising that cybersecurity took center stage in many discussions. As third-party relationships grow, so do the risks tied to data storage and management. We’ve all been there—working with external providers and realizing that while outsourcing may simplify some tasks, it can open new vulnerabilities if not managed correctly. The sessions emphasized the need for close collaboration between financial institutions and their IT teams to ensure data security aligns with regulatory expectations. This resonated with me because it’s not just about having the latest security tools—it’s about internal coordination. Every department plays a role in protecting the data we work with.
5. Enforcement Trends Targeting Global Players
One of the more interesting points came up in discussions about enforcement actions targeting foreign-located financial service providers. Regulatory standards aren’t just for domestic players anymore—global institutions serving U.S. clients must also comply with these stringent regulations. Non-compliance has already led to significant enforcement actions, and it’s a trend that’s likely to grow. For Velocity, it’s a reminder to keep an eye on our global partners and ensure that we help our clients navigate this increasingly complex landscape.
6. Outsourcing Regulatory Responsibilities – Proceed with Caution
Finally, the sessions wrapped up with some critical discussions around outsourcing. While outsourcing regulatory responsibilities can help ease the load, financial institutions ultimately retain responsibility. That means proper management and oversight are critical. I found this particularly insightful when it comes to customer due diligence (CDD) and deposit aggregation. There’s a lot to manage, and institutions can’t afford to become complacent, even if they’re leveraging third-party services.
7. Regulators Push for AI Adoption in Financial Crime Prevention
At this year’s ACAMS, regulators made it clear that AI isn’t just a buzzword—it’s becoming a key tool in the fight against financial crime. With financial institutions facing increasingly complex threats, AI offers the ability to enhance detection capabilities and improve efficiency, especially when it comes to managing large volumes of data in areas like transaction monitoring and suspicious activity reporting. By adopting AI-driven solutions, institutions can stay ahead of emerging risks, reduce false positives, and focus their resources on higher-risk areas. Regulators are encouraging the industry to embrace this technology, emphasizing that AI can significantly strengthen compliance programs while
streamlining processes. The message is clear: AI isn’t optional—it’s the future of financial crime prevention.
Final Thoughts
Attending ACAMS Las Vegas this year was a powerful reminder of just how dynamic the financial crime compliance space continues to be. There are no silver bullets, but there are many opportunities to innovate, collaborate, and ultimately protect institutions and their customers. At Velocity, we’re more committed than ever to providing the tools and partnerships our clients need to stay ahead of the curve. Looking forward to continuing the conversations started here and turning these insights into actionable strategies!
