What Does an AML Analyst Do?

AML analysts are responsible for analyzing data and information to identify potential money laundering activities. They commonly work with banks, credit unions, and other financial institutions to ensure that they’re following all applicable laws and regulations.

AML Analyst Job Duties

Anti-money laundering (AML) analysts have a wide range of responsibilities, which can include:

• Reviewing the bank’s existing policies, procedures, and guidelines to ensure compliance with federal laws and regulations
• Reviewing new customers’ applications and identifying potential red flags that may indicate suspicious activity such as large deposits of cash, multiple small transfers between different accounts, or frequent large wire transfers
• Analyzing customers’ transactions for evidence of money laundering, fraud, or other illegal activities
• Reviewing financial transactions to identify possible instances of money laundering, suspicious activity, or other criminal activity
• Monitoring transactions for signs of fraud or other illicit activity to help detect patterns of suspicious activity that may require further investigation
• Reviewing bank records to identify unusual activity that might indicate money laundering or other criminal activity
• Coordinating with other departments within the bank including legal, risk management, operations, and compliance to resolve issues or concerns identified during audits or investigations
• Coordinating with law enforcement agencies to notify them of any suspicious activity that may violate federal statutes or result in prosecution of the bank by the government
• Using software applications designed for money laundering detection such as DART or Money Mover

AML Analyst Salary & Outlook

AML analysts’ salaries vary depending on their level of education, years of experience, and the size and industry of the company. They may also earn additional compensation in the form of bonuses.

• Median Annual Salary: $70,500 ($33.89/hour)
• Top 10% Annual Salary: $122,000 ($58.65/hour)

The employment of AML analysts is expected to grow faster than average over the next decade.

Demand for AML analysts will stem from the need to prevent money laundering and ensure compliance with laws and regulations. In addition, the need to prevent fraud and cybercrime will continue to drive demand for AML analysts.

Related: AML Analyst Interview Questions and Answers

AML Analyst Job Requirements

AML analysts typically need to have the following qualifications:

Education: Most employers require AML analysts to have a bachelor’s degree in accounting, finance, economics, statistics or another closely related field. Some employers may accept candidates who have a bachelor’s degree in a non-related field if they have relevant work experience.

Training & Experience: AML analysts typically receive on-the-job training to learn the specific processes and procedures of their role. Training may include shadowing an experienced AML analyst or completing a period of self-study followed by evaluation by a supervisor.

Certifications & Licenses: While not required, AML analysts can gain additional certifications to gain additional knowledge about the field and their responsibilities, further advance their career and increase their earning potential.

AML Analyst Skills

AML analysts need the following skills in order to be successful:

Technical skills: AML analysts use technical skills to analyze data and create reports. They may use software programs to gather and sort data, create graphs and charts and create documents and presentations. Technical skills are also necessary for learning new software and technology.

Communication skills: As an AML analyst, you may be required to communicate with other departments, clients and other parties. Effective communication skills can help you convey information clearly and make others feel comfortable. You can also use your communication skills to help build relationships with others and foster teamwork.

Analytical skills: Analytical skills are the ability to solve problems and make decisions based on the information you have. As an AML analyst, you need to be able to interpret data and make decisions based on the information you have. This can include making decisions about whether a transaction is suspicious or not.

Attention to detail: Strict attention to detail is necessary for AML analysts to ensure they correctly identify and address potential risks. They must also ensure they correctly identify and classify transactions to ensure they apply the correct regulations. This also ensures the financial institution doesn’t miss any transactions that may be fraudulent.

Knowledge of regulations: AML analysts work in finance and compliance, so they need to understand regulations and laws that affect the finance industry. Regulations are constantly changing, so AML analysts need to stay up to date on the latest regulations. This ensures they can create compliance plans that meet regulatory standards.

AML Analyst Work Environment

The work environment for an AML analyst is typically an office setting, although some travel may be required for on-site visits or to attend training seminars. The job is generally performed during regular business hours, but some overtime may be necessary to meet deadlines or to complete special projects. The job can be stressful at times, due to the need for accuracy and attention to detail, but most analysts find the work to be interesting and challenging.

AML Analyst Trends

Here are three trends influencing how AML analysts work. AML analysts will need to stay up-to-date on these developments to keep their skills relevant and maintain a competitive advantage in the workplace.

The Need for Better Collaboration Between Financial and Legal Professionals

The need for better collaboration between financial and legal professionals is becoming increasingly important as businesses become more complex. This trend is leading to an increased demand for AML analysts, who can help ensure that financial and legal professionals are working together effectively to protect the company from potential risks.

AML analysts can capitalize on this trend by developing strong relationships with both financial and legal professionals. This will allow them to better understand the needs of each team and how they can work together to protect the company from risk. In addition, AML analysts should be prepared to provide training and guidance to other members of the team in order to improve collaboration across departments.

Compliance Officers Will Become More Technical

As compliance officers become more technical, they will need to rely on AML analysts to help them stay up-to-date on the latest regulations.

AML analysts can take advantage of this trend by becoming experts in the latest regulations and trends in anti-money laundering (AML) technology. This will allow them to provide valuable insight and advice to compliance officers, helping them to stay ahead of the curve.

More Focus on Cybersecurity

As cybersecurity becomes a bigger concern for businesses, AML analysts will need to focus more on this area.

In order to be successful in this field, AML analysts will need to have a deep understanding of cybersecurity threats and how to mitigate them. They will also need to be able to identify potential vulnerabilities in a business’s systems and recommend solutions to fix them.

How to Become an AML Analyst

A career as an AML analyst can be both rewarding and lucrative. It’s important to start your journey by gaining the necessary skills and experience. This can be done by taking online courses, attending workshops, or working in a related field.

Once you have the required knowledge and skills, it’s time to find a job. You can do this by networking with professionals in the industry, applying for jobs online, and submitting your resume to companies that are hiring. As you progress in your career, you can specialize in certain areas of AML analysis.

Advancement Prospects

AML analysts can advance their careers by taking on more responsibility at their current job, or by moving to a new job with more responsibility. AML analysts who are able to take on more responsibility and show leadership potential may be promoted to senior analyst or manager positions. Those who want to move to a new job may be able to find positions with more responsibility at other financial institutions, or in other industries that are subject to AML regulations.

AML Analyst Job Description Example

[CompanyX] is a global leader in the fight against money laundering and financial crime. We are looking for an experienced AML Analyst to join our team. The ideal candidate will have experience working in the financial services industry, conducting AML investigations, and be familiar with global AML regulations. He or she will be responsible for conducting AML investigations, preparing Suspicious Activity Reports (SARs), and providing analysis and recommendations to management. The successful candidate will be a quick learner with strong analytical skills and the ability to work independently.

Duties & Responsibilities

• Understand and comply with all applicable laws, regulations, policies, and procedures related to anti-money laundering (AML)
• Assist in the development and implementation of AML compliance program
• Conduct customer risk assessments by reviewing account activity and identifying suspicious transactions
• Prepare Suspicious Activity Reports (SARs) for filing with FinCEN as needed
• Monitor large cash transactions and wire transfers for possible money laundering red flags
• Perform periodic reviews of existing customers to identify changes in risk profile
• Keep abreast of current AML typologies and trends
• Participate in AML training programs and maintain up-to-date knowledge of AML compliance requirements
• Assist with special projects or investigations as needed
• Maintain accurate and complete documentation of all AML compliance activities
• Adhere to internal confidentiality and security protocols
• Cooperate fully with regulatory examinations and audits

Required Skills and Qualifications

• Bachelor’s degree in business, finance, accounting, or related field
• 3-5 years experience working in compliance or anti-money laundering (AML)
• Strong analytical skills with attention to detail
• Excellent written and verbal communication skills
• Ability to work independently and as part of a team
• Proficient in Microsoft Office, with aptitude to learn new software and systems

Preferred Skills and Qualifications

• Certification in compliance or AML, such as CAMS or ACAMS
• Experience with sanctions or watchlist filtering
• Working knowledge of banking regulations, including BSA/AML and KYC
• Familiarity with transaction monitoring systems
• Masters degree in business, finance, accounting, or related field