2 minute read 11 Feb 2021
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What is the current state of transaction monitoring in the Nordics?

By Mette Slotved Thomsen

Nordic Head of Financial Crime, Director, EY Denmark

Dedicated to help financial institutions efficiently combat financial crime. Thrives with organizing. Passionate book reader and cook.

2 minute read 11 Feb 2021

Show resources

  • AML Transaction Monitoring - 2020 Nordic Survey Report

EY conducted a survey investigating transaction monitoring maturity of Nordic banks and how the banks compare to their EMEIA counterparts.

The survey combines insights from Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Transaction Monitoring (TM) professionals from 28 banks across the Nordics. The survey aimed at capturing differences between Nordic banks of different sizes and between the Nordic countries, as well as how the Nordic banks compare to other financial institutions in EMEIA.

Download AML Transaction Monitoring - 2020 Nordic Survey Report

Key findings of the report:

1. Nordic banks have a lower maturity of TM capabilities compared to financial institutions in EMEIA

The survey compared the Nordic banks to the financial institutions which participated in the AML TM survey conducted at an EMEIA level in 2018. In general, the current maturity of TM capabilities and operations in the Nordics is lower than that of respondents of the 2018 EMEIA survey (find the survey here).

2. Significant differences in TM operations depending on the size of the banks in the Nordics

There are significant differences in the TM setup comparing small and medium-sized banks in the Nordics with the large Nordic banks. While most organizations have matured, there is a gap between larger banks who have experienced direct regulatory scrutiny and invested heavily as a result, and the smaller banks who are more focused on getting the basics right.

3. Increased investments in TM, including new technologies, among the Nordic banks

Nordic banks are exploring the possibilities of new technologies in the TM field to improve both the effectiveness and the efficiency of their TM operations.

Investments in transaction monitoring

89%

of respondents expect spending related to TM to increase or significantly increase in the next financial year.

Summary

The survey was conducted to investigate the state of TM in Nordic banks. The results show that large Nordic banks are not on the same level as the EMEIA survey participants were in 2018. The report also highlights differences in maturity between small/medium-sized and large banks in the Nordics, showing that the smaller banks are behind the large banks. Lastly, the report finds that there is a trend of increasing investments in TM among Nordic banks in order to improve effectiveness and efficiency.

About this article

By Mette Slotved Thomsen

Nordic Head of Financial Crime, Director, EY Denmark

Dedicated to help financial institutions efficiently combat financial crime. Thrives with organizing. Passionate book reader and cook.