AML/Compliance/KYC professionals come in!

Originally Posted by Unregistered

Hello, would like to know if KYC a good place to start, and how's the progression for people starting out in KYC?
From what I see the pay is about 2.6-2.8k for entry level, how much does this increase by in say, 2 years in the current market?
From what I understand about KYC, its a fairly operational role, some say its mundane. Therefore what types of roles can people in KYC eventually move into that can possibly command a higher salary?

I am not in KYC but I deal with people from KYC a lot. Based on my observations, yes, KYC is fairly operational. This is also the same reason most people doing KYC are less ambitious and less comfortable with a leadership role. I am not sure its the work that drives them to such behavior or such people with such characteristic tend to go for operational job. Having said that, if you are more ambitious and comfortable with leadership role, it can potentially be easier for you to progress within the KYC structure. There is always a lot of remediation projects in major banks but nobody is willing to lead. There are KYC head at SVP or Director levels and they do not earn less than $200-$250K per annum.

If you are in a big bank, the options to move to other functions are always there. It is all about relationship building. If you want to move to Business (not necessary sales) from KYC function, it is possible as well. All business has a team of business managers/COO (all banks call the differently) to support bankers. If you want to move to AML, that is also possible.

Originally Posted by Unregistered

Compliance and AML are still good for another 5 years or so. There will still be demand but most banks prefer to hire experienced individuals. If contracting is the way to go for you to gain more experience, then you can try that option.

At this time and age, Compliance and AML are meant for people who constantly wants to strive for a difference and be ambitious. In fact, the whole working environment has evolved and changed. MAS is currently looking outside of Singapore, to digitize surveillance work. Basic typology will no longer be effective in 5 years time as crooks are getting smarter. Data analysis will be the new trend to identify gaps within the bank. This is also the only reason why banks will continue to hire Compliance and AML expertise in Singapore rather than outsourcing work to lower cost locations. If you wants a stable job and is resistant to changes, Compliance and AML will not be suitable. With the world evolving and becoming more digitized, all industry must evolved to catch up. This is the same reason why you are not using iphone 1 anymore.

There are talks that in 10 years time, brick and mortar banks will cease to exist. Everyone will do their banking needs online and the whole banking environment will change.

Im not adverse to change, but i guess what i mean is that i would like to start my career in a job that would not be irrelevant in a few years time. Taking what you said into account, where would compliance and aml professionals end up in 5 to 10 years time? Im not sure if this will be a stretch, but where would you say would be the best place or function for a fresh grad to be in with the current market conditions and future developments?

Originally Posted by Unregistered

I am not in KYC but I deal with people from KYC a lot. Based on my observations, yes, KYC is fairly operational. This is also the same reason most people doing KYC are less ambitious and less comfortable with a leadership role. I am not sure its the work that drives them to such behavior or such people with such characteristic tend to go for operational job. Having said that, if you are more ambitious and comfortable with leadership role, it can potentially be easier for you to progress within the KYC structure. There is always a lot of remediation projects in major banks but nobody is willing to lead. There are KYC head at SVP or Director levels and they do not earn less than $200-$250K per annum.

If you are in a big bank, the options to move to other functions are always there. It is all about relationship building. If you want to move to Business (not necessary sales) from KYC function, it is possible as well. All business has a team of business managers/COO (all banks call the differently) to support bankers. If you want to move to AML, that is also possible.

Hi, thanks for your reply. From what I know, KYC is a subset of AML, but are there better options apart from KYC if you are just starting out in the industry? How many yrs of exp does it typically take to hit a SVP or Director level?

Would having experience in KYC qualify you for risk management related roles such as ops risk?

How to apply for ACAMS exam?
Fill up the application form and send to their address in US?

Originally Posted by Unregistered

FATCA/CRS falls under compliance, specifically tax compliance. It touches a lot on CDD/KYC so not really transit-able to AML usually (excluding networking/luck). Despite being niche, there are transferable skills depending on which part of FATCA/CRS you are working for (project/implementation, BAU, advisory)...

Thanks for the information bro! Went for an interview that does CRSand FATCA so was wondering if there's a path to move to AML. Still awaiting for the offer but nonetheless, thanks for the insights!

Originally Posted by Unregistered

Hi, thanks for your reply. From what I know, KYC is a subset of AML, but are there better options apart from KYC if you are just starting out in the industry? How many yrs of exp does it typically take to hit a SVP or Director level?

Would having experience in KYC qualify you for risk management related roles such as ops risk?

In some banks, KYC is a subset of AML. In some banks, it is a separate team under Operations. In terms of experiences, it vary from individuals. I have seen SVP/Director in their mid 30s and I have seen SVPs in their 40s and 50s.

There are many types of risk managements, so it depends on the structure of the organization as well. I have seen people with KYC experiences moved into Ops risk, and vice verse.

Originally Posted by Unregistered

Im not adverse to change, but i guess what i mean is that i would like to start my career in a job that would not be irrelevant in a few years time. Taking what you said into account, where would compliance and aml professionals end up in 5 to 10 years time? Im not sure if this will be a stretch, but where would you say would be the best place or function for a fresh grad to be in with the current market conditions and future developments?

You are asking a question which nobody can predict. Its like asking, "what should we do now, if we can look back 5 years from now. There are multiple articles who talks about jobs that exist today will no longer exist in 10 years time.

Compliance and AML will continue to be relevant, in many years to come, but the way it is performed, is going to be very different. There will be more process automated. Existing manual process will be removed and replaced by more advanced data analytics. In many global organizations, there are teams who do nothing but think about the future of banking, beyond digitization. One of the things they will consider are systems that will replace the physical bankers, and the physical needs for human to perform specific roles. Even food courts will be replaced by robots in the future.

I am not trying to scare you, as a fresh graduate, but to manage your expectations on what will happen eventually. However, if you are willing to continuously keep yourself updated on the current technology and progress, and not be too comfortable about finding a "stable" job that will remain unchanged in the years to come, you will be fine.

Originally Posted by Unregistered

In some banks, KYC is a subset of AML. In some banks, it is a separate team under Operations. In terms of experiences, it vary from individuals. I have seen SVP/Director in their mid 30s and I have seen SVPs in their 40s and 50s.

There are many types of risk managements, so it depends on the structure of the organization as well. I have seen people with KYC experiences moved into Ops risk, and vice verse.

Thanks for the reply. From what I see now, most risk management related roles require some form/few years of experience. Typically, what kind of experience (KYC, TM, etc) will be seen as more transferable or viewed more favourably, be it for transitions to progress further up into a more compliance advisory role, or even to other functions?

Originally Posted by Unregistered

Thanks for the reply. From what I see now, most risk management related roles require some form/few years of experience. Typically, what kind of experience (KYC, TM, etc) will be seen as more transferable or viewed more favourably, be it for transitions to progress further up into a more compliance advisory role, or even to other functions?

In my opinion, KYC is more transferable because you need to understand the client, end to end, in terms of profile. For risk management, you also need to understand the risk involving the client, which goes back to the client's profile.

TM is more transferable if you want to be an investigator. In many banks, TM does end to end, from alert disposition to SAR filing. If you are doing that in a bank, it will be easier for you to move to AML advisory. I have seen quite a few Compliance people moved to do AML, but I haven't seen many AML people moving to do Compliance. There are much few movements within Compliance (compared to AML) these days as well. Many Compliance people are more grounded to their role these days.

Originally Posted by Unregistered

In my opinion, KYC is more transferable because you need to understand the client, end to end, in terms of profile. For risk management, you also need to understand the risk involving the client, which goes back to the client's profile.

TM is more transferable if you want to be an investigator. In many banks, TM does end to end, from alert disposition to SAR filing. If you are doing that in a bank, it will be easier for you to move to AML advisory. I have seen quite a few Compliance people moved to do AML, but I haven't seen many AML people moving to do Compliance. There are much few movements within Compliance (compared to AML) these days as well. Many Compliance people are more grounded to their role these days.

Thanks for the info. Would AML exp be better than KYC exp for progression to compliance/advisory roles, or are they roughly the same?