Banks around the world are struggling to keep up with growing anti-money laundering (AML) demands, according to a new report by Hawk and Celent.
According to Hawk, the research asked compliance leaders to identify the biggest challenges facing their institutions, with staffing shortages, legacy systems, and mounting regulatory pressure topping the list.
Analyst shortages were named by 77% of respondents as the most pressing concern. Banks are seeing workloads rise sharply, while skilled AML professionals remain in short supply. This imbalance is pushing firms to accelerate automation and look at ways to merge AML and fraud teams for greater efficiency. AI is increasingly viewed as critical for cutting false positives and enabling analysts to focus on high-risk investigations.
False positives remain another significant pain point, with 40% of banks saying the issue is overwhelming compliance teams. When legitimate transactions are flagged as suspicious, analysts spend hours chasing unnecessary alerts. Hawk reports that its AI technology has helped financial institutions cut false positives by an average of 70%, freeing up compliance staff to focus on real risks.
Legacy technology is another headache, with 30% of respondents admitting their AML systems run on outdated infrastructure. These older platforms often struggle with data integration and high alert volumes, leading many institutions to prioritise modernisation. Hawk offers both fully modern AML systems and an AI overlay solution to enhance existing infrastructure without the need for total replacement.
Machine learning adoption also poses difficulties. A third of banks said model development and deployment are key challenges, highlighting the need for technology partners that can support implementation and ensure systems work effectively at scale.
Data quality is another concern. Around 33% of banks said sourcing and maintaining accurate KYC, KYB, and sanctions data remains a problem, impacting risk ratings and compliance confidence. Providers offering continuously updated datasets can help institutions stay ahead of regulatory demands.
Meanwhile, nearly a quarter of banks cited rule tuning as a major obstacle. Rules-based systems remain central to AML programmes, but adjusting them to keep pace with evolving threats is resource-intensive. Hawk’s no-code rule set-up aims to ease this burden, enabling in-house teams to make changes quickly without relying on external vendors.
Cost pressures also weigh heavily on banks. Some 23% said scaling AML programmes without spiralling costs is challenging, though institutions pursuing a combined fraud and AML (FRAML) approach reported savings of more than $5m.
Criminals are also using AI to create synthetic identities and automate fraud, with 17% of banks naming AI-powered adversaries as a growing threat. At the same time, regulators are tightening enforcement, leaving 17% of institutions struggling to keep up with new rules.
Finally, 7% of banks said the rapid emergence of new financial crime typologies is a concern, underlining the need for compliance programmes that can adapt quickly through real-time analytics and flexible policy frameworks.
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