ACAMS Today Magazine (Nov-Dec 2008) Vol. 7 No. 6 | Page 24

AML PROFESSION Who made more in 2008? –Survey says… T his year, in the midst of the current financial crisis, the employment and compensation landscape has changed for the anti-money laundering/ combating the financing of terrorism (AML/CFT) field. There’s no doubt about it, professionals in all financial sectors are feeling the effects of the current economic downturn—AML is no different. In some cases, departments are downsizing; others have implemented hiring freezes. Budgets are being slashed. The 2008 ACAMS AML/CFT Compensation Survey reflects these turbulent times. Last year, the inaugural ACAMS AML/ CFT Compensation Survey—the first of its kind for the AML/CFT industry— produced some surprising data. Namely, senior European anti-money laundering executives earn significantly more than their counterparts in the U.S. and abroad; government job compensation is generally on par with private sector salaries and CAMS-certified AML professionals consistently out-earned their noncertified counterparts. The 2007 findings showed high demand for skilled AML professionals. Staff costs represented up to two-thirds of total compliance budgets. Compensation rates all over the globe were high for those with more experience on the job—well into the US$300,000–US$400,000 range for the upper levels, even in traditionally lower-paying regions such as Central and South America. This year, salaries have decreased across the board in nearly all industries, levels and regions of the world. Here’s the breakdown as compared to 2007, taking into account all industries, regions, numbers of employees and asset size. Surprising exceptions: In 2008, it pays to be in the middle Not everyone is seeing a salary decrease, however. Interestingly enough, salaries Compared to 2007 Looking ahead What does this mean for job outlook and security for AML/CFT professionals in the next few years? It may be too early to tell, but the truth of the matter is that banks and other financial institutions will always be regulated. That said, compliance Compared to 2007 Money Services Retail Banking Salary Median +2.7% +3.9% +3.9% Total Compensation Median +2.8% +3.4% +2.7% department heads will ultimately face pressure to cut costs while still being held responsible for meeting growing compliance requirements. As budgets decrease, compliance departments will be charged to do more with less. Adding more employees will likely not be an option. What to do in the meantime – advice for entry- mid- and top-level professionals Most will agree that now may not be the best time to search for a job in the financial industry. The unemployment rate is up to a little more than six percent and is likely to rise. For entry-level AML/CFT professionals just entering or re-entering the workforce, the key to advancement and salary negotiation is differentiation— standing out from the pack through specialized training and certification. There will undoubtedly be fewer jobs and more people vying for them. | Mid Level Top Level -21.8% Salary Median Starting salaries for entry-level jobs may not be comparable to what they were last year, but this year’s survey results showed that CAMS-certified professionals consistently out-earned their noncertified counterparts by 14%—across all levels. CAMS certification is a great way to jump-start a new career. For those in the middle, certification and training are keys to gear up for inevitable resource and budget cuts, as mid-level Investment Banking Entry Level Total Compensation Median 24 acams today and overall compensation packages for mid-level resource managers increased this year, specifically in the investment banking, money services and retail banking industries. These increased salaries for mid-level employees can be found in North America, the Caribbean and Oceania (Australia/ New Zealand). Last year, Caribbean AML professionals reported earnings on the lower end of the spectrum. -1.4% -10.7% -23% -3.9% -11.6% November / December 2008 employees may be expected to take on new roles to account for hiring freezes. This is why the salaries of mid-level AML/CFT professionals have increased this year. Mid-level professionals must show they have a full grasp of the latest (and constantly changing) regulatory requirements and can understand the complexity of compliance across a full spectrum of financial products, services and jurisdictions. Top-level professionals will be on the hook for ensuring their compliance departments are running at full capacity with possibly fewer employees and resources. They should make a point to allocate a portion of the budget for regular training and certification of their subordinates for maximum return on their in