Banks Struggle to Integrate Fraud and AML Systems
A new survey finds most financial institutions operate with silos that leave money laundering links undetected.
Updated on Oct. 28, 2026 in Financial Crime
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A global survey of 165 financial executives across 21 countries reveals that internal silos are preventing banks from effectively stopping illicit activities. While many institutions are attempting to converge their fraud and anti-money laundering (AML) operations, deep structural barriers remain.
Why it matters
Real-time payment systems are accelerating fund transfers, making it difficult for banks to stop money laundering without a unified view of customer risk. As criminals use advanced tools like AI and deepfakes, regulators are increasing pressure on institutions to detect illicit behavior earlier in the process.
A new study shows 88% of firms cite organizational silos as a primary barrier to alignment, while 81% report that operating separate teams leads to duplicate alerts. Only 1% of the 165 surveyed institutions currently share data, models, infrastructure, and governance across both functions.
The players
Datos Insights
This is a research and advisory firm that provides data-driven analysis for the financial services industry.
SAS
Based in Cary, North Carolina, this multinational developer provides analytics and anti-money laundering software for global institutions.
AWS
This is a comprehensive cloud computing platform that provides infrastructure services for global organizations.
The details
Most institutions are opting to connect existing systems rather than replacing them, with 72% running analytics on shared infrastructure while maintaining separate models. Although 73% of firms share data during active investigations, a lack of unified governance continues to undermine overall defensive capabilities.
Timeline
The research report from Datos Insights and SAS was published on October 28, 2026.
A webinar discussing the findings is scheduled for November 2, 2026.
Legal Context
The report highlights the operational difficulty banks face in maintaining compliance with the FATF Recommendations on Anti-Money Laundering. The study suggests that current technological and organizational gaps represent a major obstacle for institutions seeking to meet the evolving standards set by international financial watchdogs.
Customers may experience slower transaction processing as banks implement stricter, more integrated monitoring of real-time payments. These improvements aim to protect account holders from sophisticated AI-driven scams and mule network activities that thrive on fragmented bank oversight.
The takeaway
Financial institutions must transition from reactive, siloed investigations toward proactive, unified customer risk management to stay ahead of modern financial crime. Organizations that successfully dismantle internal barriers stand a better chance of meeting tightening regulatory demands.
What happens next
Experts from SAS and AWS will host the Future of FRAML webinar on November 2, 2026, to discuss the report findings and industry implications.
Further reading
For additional context on institutional compliance strategies, visit the Financial Crime section.
More information
Access the full research report on the official portal for further data and insights.
Source note: This article includes information reported by The Manila times.
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