I have been doing compliance for 8 years and AML for 5 years. Currently, I am a SVP with one of the major banks. Here are my thoughts:
- There has been a surge in demand for AML in the recent years. Majority of the demand is at much more junior level, i.e manager, associate level in the space of KYC or transaction monitoring or compliance technology.
- If you do a simple maths, every 20-30 manager/associates, only 1 will eventually become a AVP within 2-3 years time. Every 10 - 12 AVPs, only 1 will eventually become a VP within 2-3 years. If you keep doing the maths, you would be able to assess the probability of one becoming a SVP, Director and MDs.
- Even if you have the job title, there are not many banks who are paying the amount that many have quoted. I am not saying that the pay do not exist because in reality, they do, but majority of the mid-sized and smaller player are not paying that kind of money. Very very few major banks are paying that kind of money. Anyone can count how many major banks maintain a huge AML or Compliance team.
- Like all organizations, there is only X number of AVPs, VPs, SVPs, Directors and MDs. Even with high demands in AML, the really huge paycheck that you are looking are really at the top levels (SVPs, Directors and MDs). The number of Directors and MDs earning between SGD$600K to SGD$1million a year do exist, but when you compare the percentage of people earning that pay, against the total number of people who are actually doing AML or Compliance, is probably less than 1%. You may have dreams about earning that amount of money but you have to be realistic if you are really the top 1%? Additionally, the reasons why the MDs are earning this kind of pay, is because there is huge liability towards the job. More regulators are expecting Chief Compliance Officer to take responsibilities and this increased risks, comes with the increased pay.
- The cost of compliance is rising in most banks. The bigger banks are looking to move many compliance functions to lower cost countries, i.e. Philippines, Malaysia and India. These includes the more junior roles from manager, associates, AVPs & even VPs. These are the same banks who are paying the highest pay for the SVPs, Directors and MDs. Hence, if you are somewhere between these levels, there would eventually be a gap whereby it is not going to be so easy to move to a SVP, Director or even a MD level. With so many jobs moving out of Singapore, and you may be stuck at a more junior or mid level position for a while.
- Future career prospects is like playing chess. You cannot just think of the next move, but you have to think of the move after next, as well. Initial job hoping might gives you the pay increase that you want, but no organization is going to promote a job hopper. At some point, you would need to stay in an organization and contribute before you can be considered for promotion. Fewer organizations are willing to offer a higher rank when people change jobs. Any organizations who are willing to do so, usually have some problems that needs to be fixed. If there are some serious problems to be fixed, would someone who have been job hopping have enough experiences to cope with these problems?

I am not saying that AML is a good or bad area to enter, but you have to think beyond the dollars and cents, and think about the future career prospects, and assess if it is what you want.