By having a good management of anti-money laundering, CIMB can reduce the risk of exposure to financial crime. This is done with the efficient operated of anti-money laundering system such as Account and Transaction AML Monitoring, Watchlist as well as Payment and Sanction Filtering. This will bring advantage to both customer and bank.
It will protect CIMB from the reputation damage, fines and vulnerabilities that CIMB withstand when the concentration of illegal funds increments.Reputation is vital for an industry especially bank like CIMB. With reducing the risk of exposure to financial crime, the reputation of the CIMB will be enhanced. The good reputation regarding the business practices will increase the confidence in the integrity of the CIMB. This will then safeguard the operation of CIMB. This is because customers, regardless of borrowers, depositors or investors, they will stop their relationship with a bank whose reputation has been harmed by doubts or assertions of money laundering. The customer will feel worried and afraid to choosing this bank for fulfil their financial need.
Therefore, with enhancing the reputation, the number of borrowers and depositors will also be improves. The situation of losing high quality of borrowers and cause reduces profitable loans can be minify. It can also avoid the depositors withdraw their money, thus lessening an inexpensive source of funding for the CIMB. Besides, reducing the risk of exposure to financial crime can also avoid suffering in fines and investigation by relevant authorities. When there is money laundering in a bank, the fines can cost bank heavily. This will consider as an enormous expenses for bank.
However in the period of investigation of money laundering, the normal operation of bank will be affected. Some counter maybe close for investigation and variety of document will be need for further survey. All of this situation will affect the overall operation of bank. In a nutshell, bank is a placed that facilitated money laundering one way or another, even inadvertently, will also suffer huge fines and damage reputation. By having a good management of anti-money laundering, CIMB can gain a competitive advantage and operate in an efficiency and effectiveness manner.
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