Understanding and optimising AML costs

Why costs can add up quickly

AML work is complex and often spread across systems or departments. Without a coordinated approach, firms face:

• Lost time from manual or duplicated tasks
  
• Delays caused by fragmented systems
  
• Reduced productivity from staff doing low-value compliance admin
  
• Higher risk of non-compliance — leading to fines, disruption, or reputational damage
  

How to reduce AML costs without compromising compliance

1. Automate where it adds value

• Use tools to handle ID checks, transaction screening, and document tracking
  
• Integrate systems to avoid duplication
  
• Choose cloud-based tools for flexibility and lower infrastructure costs
  
• Regularly review tools for overlap or underuse
  

2. Make processes more efficient

• Use risk-based workflows to focus time on higher-risk clients
  
• Keep procedures clear and consistent to reduce rework
  
• Collect team feedback to identify what slows people down
  
• Review onboarding and monitoring tasks to reduce unnecessary steps
  

3. Allocate people and time more strategically

• Cross-train staff so teams can flex as needed
  
• Track where time is being spent (especially on manual tasks)
  
• Balance AML time against billable work — especially for senior staff
  
• Review team structure regularly to avoid bottlenecks
  

4. Plan and track your budget clearly

• Build AML into your annual planning process
  
• Include training, tool upgrades, and audit costs
  
• Track spend per client or per activity to see where costs are high
  
• Run cost-benefit reviews before buying new systems or services
  

5. Optimise training and staff development

• Focus training on high-risk areas, not just ticking boxes
  
• Use bite-sized or on-demand learning to save time
  
• Reuse core training resources across teams
  
• Outsource specialist training only where needed
  

6. Review and manage external providers

• Reassess software vendors and consultants regularly
  
• Compare value and features across options before renewing contracts
  
• Set clear expectations in SLAs around performance and cost
  
• Stay informed about pricing trends to ensure value for money
  

Summary

AML compliance comes with real costs — but it doesn’t need to become a burden. By automating key tasks, focusing on higher-risk areas, and streamlining how time and money are used, firms can maintain robust compliance without overspending.

To manage your AML costs:

• Track where time and money are going
  
• Build your budget around risk and efficiency
  
• Invest in the right tools and training
  
• Review regularly and adjust as your needs evolve
  

With the right systems in place, AML becomes a manageable, cost-effective part of running a modern accounting firm.

This article was summarised by the Firmcheck content team. The original content was written by independent AML expert Ian Waters and is available on our blog.

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