Money laundering has Wall Street freaking out
Wall Street executives are freaking out under the strain of widespread money fraud.
More compliance cops, more technology and expanded budgets are needed, they warn, to help stem the flood of dirty money laundered internationally, according to a new survey.
In a field paying anywhere from $75,000 to $250,000 in annual salary for qualified compliance pros, staffing is one of the biggest challenges for firms today.
More than 75 percent of execs cite it as a concern as the job market gets competitive amid a severe anti-money laundering talent shortage, according to the survey of US financial institutions released by NextAngles, Compliance execs are increasingly anxious they don’t have enough staff and backup, the survey reveals.
The money is laundered by a variety of dodgy players, from drug cartels to terrorist cells.
“It is a huge problem,” Mallinath Sengupta, chief executive of NextAngles, told The Post. “The crooks are getting smarter. And if you are not catching the crooks on time, you do not know how the [laundered] money will be used to finance.”
The sums eclipse the wealth of many rich nations. About 5 percent of the globe’s gross domestic product is criminally laundered, according to one United Nations estimate. And as much as $7.6 trillion in “hot money” is hidden in offshore accounts, only 20 percent of which is reported, an academic study says.
“All the firms — including the Goldman Sachses out there — are having budgetary constraints on the compliance side,” Sengupta said.
“Their profitability is down, and they have an escalating cost curve without exception,” he added.