How to Decrease the Cost of AML Compliance?
The cost of AML compliance is continuing to rise since regulations are becoming stricter and technology is advancing each year. Many companies try and fail to reach operational efficiency while adhering to regulatory expectations. These companies usually rely on outdated technology or manual processes which, contrary to popular belief, drive up expenses even more.
To reduce AML compliance costs, companies need smarter strategies and automation. In this blog post, we’ll be detailing how to decrease the cost of AML compliance with advices from our professional team.
In the first half of 2025, regulators issued 139 financial penalties totaling about $1.23 billion, which is a 417 % increase over the same period in 2024. AML compliance is still an important point to pay attention to in 2025, since technology advancements and regulations aren’t stopping any time soon.
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Automate Manual Compliance Workflows
The first way to decrease AML compliance costs is to automate compliance workflows. By replacing repetitive and time-consuming tasks with automated systems, companies can reduce the number of analyst hours needed for routine checks and other reviews. Automation also reduces manual data entry and lowers the risk of human error.
In addition to cost savings, automated workflows can speed up customer onboarding which is great for overall customer satisfaction. Identity verification, risk scoring, screening processes and more can be completed in real time while keeping up with compliance standards.
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Consolidate Tools Into an All-in-One Platform
Another advice for companies is to consolidate tools into an all-in-one platform. This step can reduce overall costs and operational complexity many companies get overwhelmed by. Managing multiple vendors can be tough, with overlapping functionalities and higher licensing fees.
By using a single integrated solution, companies can get rid of redundant vendor expenses. A unified platform is also better since it simplifies system integrations, which reduces time and resources needed to connect different tools.
IT teams will deal with less maintenance demands and fewer compatibility issues thank to them managing fewer systems. This single system outlook cuts costs and improves efficiency at the same time.
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Reduce False Positives With Smarter Screening
One other way companies can decrease AML compliance costs is by reducing false positives using smarter screening. Overly sensitive screening systems can be non-beneficial for companies since they generate large volumes of alerts which require manual review.
By adopting smarter screening technologies like matching algorithms and AI-driven analysis, companies can lower these alert volumes without letting go of compliance. Fewer false positives can help compliance teams by letting them focus on genuinely high-risk cases.
Reducing false positives leads to both reduced workload and improved analysts productivity and morale. Over time, smarter screening practices lead faster investigations and lower staffing costs.
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Apply a Risk-Based Approach (RBA)
Applying a risk-based approach (RBA) can help companies lower AML compliance costs effectively. Instead of treating all customers same, a risk-based approach allows companies to target high-risk customers, jurisdictions, and activities more in their reviews. Thanks to this targeted focus, companies can use their resources where they matter the most.
By limiting enhanced due diligence (EDD) checks to actually high-risk cases, companies can stop unnecessary reviews that add to the AML compliance costs. A risk-based approach also helps prevent over-screening. Over-screening can lead to excessive alerts that take too much time out of compliance teams.
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Use API Integrations to Eliminate Repetitive Work
Using API integrations is another way to reduce AML compliance costs, since this technique eliminates repetitive work. By automatically syncing customer data across all systems, companies can make sure their information is consistent and up-to-date without needing manual work.
API integrations remove the need for teams to enter the same data multiple times across different platforms and devices. API-driven workflows can also identify duplicate identity verifications and screening checks, later eliminating them to reach better efficiency. Fewer manual points of work will lead to fewer errors and reduced rework. Compliance teams can operate more efficiently without losing the quality of work.
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Outsource Non-Core Compliance Tasks
Outsourcing non-core compliance tasks is another advice for companies who are looking to reduce AML compliance costs. Activities like initial alert reviews, data enrichment, periodic screenings can be handles by specialised third-party providers. This way, internal staffing and ongoing training expenses can be lowered.
In addition to cost savings, outsourcing can help companies by giving them access to specialised expertise and up-to-date regulatory knowledge that wouldn’t be otherwise possible internally.
Outsourcing also enables compliance operations to scale flexibly since these providers can expand their services during peak periods and contract when volumes decrease.
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Standardize KYC & CDD Documentation
One other way to reduce AML compliance costs is by standardising Know Your Customer (KYC) and customer due diligence (CDD) documentation. When onboarding requirements and document formats are clearly defined and consistent, customers can be verified faster. Thus, standardisation reduces delays and friction during the onboarding process.
Consistent documentation prevents rework caused by missing or inconsistent information. Back-and-forth communication and the risk of errors are then reduced accordingly. At the same time, standardised records make sure that files are audit-ready, so regualtory inspections are dealt with in a smoother manner.
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Train Teams Efficiently With Micro-Learning Modules
The last advice on reducing AML compliance costs is to train compliance teams through micro-learning modules. Short and focused training sessions will allow employees to learn complex and specific AML concepts without spending long hours with traditional ways of learning.
Thanks to this approach, disruption to daily operations is avoided and training expenses are lowered. Micro-learning can also minimise compliance mistakes since this way of targeted and role-specific guidanc can be easier to retain and apply in scenarios.
These modules can be updated quickly. These updates ensure that teams can stay current with regulatory changes and new internal procedures. Companies can keep their employees well-informed without paying large expenses thanks to this method.
In September 2025, FinCEN issued a Request for Information (AML Survey) to gather data on the costs NBFIs incur under AML requirements. This survey on compliance costs show that regulators are aware of the burden AML compliance brings to companies, which can lead to future guidance on cost-efficient approaches.
How May Sanction Scanner Help You?
Sanction Scanner helps companies simplify AML compliance while also reducing regulatory risk as well as operational costs. With this all-in-one compliance platform, companies would need to invest in only one platform instead of multiple tools and manual processes which can slow teams down and increase expenses.
Sanction Scanner has features like real-time sanction, PEP, and adverse media screening, automated transaction monitoring, customer risk scoring, and an integrated case management system. With these advanced features, the tool can lower false positives.
Sanction Scanner’s daily list updates, API integrations, full audit trails can make sure that compliance teams are keeping up with global regulations. Companies can focus their resources on high-risk activities and improve efficiency thanks to Sanction Scanner.
