Hawk’s latest report with Celent has revealed the biggest pain points facing banks’ anti-money laundering (AML) compliance teams in 2025, highlighting growing staffing pressures, legacy technology issues, and rising regulatory demands.
According to Hawk, staffing shortages emerged as the most pressing concern, with 77% of respondents pointing to difficulties hiring and retaining skilled AML analysts. The report notes that growing caseloads, manual reviews, and the increasing complexity of financial crime are stretching teams to breaking point.
Many banks see automation and the convergence of AML and fraud functions as key to managing workloads efficiently without rapidly expanding headcount. AI is already proving valuable here, helping to reduce false positives and accelerate investigations.
False positives themselves remain a serious problem, cited by 40% of survey participants as a top challenge. Analysts waste hours chasing legitimate transactions flagged by outdated systems, increasing compliance risk and staff burnout. Hawk claims its customers have achieved up to a 70% reduction in false positives using its AI-powered tools, freeing analysts to focus on genuine threats.
Legacy infrastructure is another obstacle, with 30% of banks still running AML systems on outdated technology. These older platforms often produce excessive false positives and lack the data integration needed for effective financial crime prevention. Hawk says its AI-powered AML platform, or its AI Overlay for existing systems, can modernise compliance without costly system replacements.
Machine learning adoption is also being slowed by a lack of expertise. Around 33% of banks identified model development as a key challenge, underlining the importance of specialist technology partners for successful deployment.
Meanwhile, 33% of banks struggle to source and maintain high-quality KYC, KYB, and sanctions data. Without accurate, up-to-date information, risk ratings and compliance efforts suffer. Technology providers offering continuously updated datasets can reduce manual workload and improve regulatory responsiveness.
Nearly a quarter of banks also face difficulties tuning their rules-based systems to keep pace with evolving threats. Hawk argues its no-code rule set-up allows financial institutions to adjust parameters quickly without relying on vendors, saving time and costs.
Cost pressures add another layer of difficulty, with 23% of respondents citing scalability concerns. The report highlights that banks adopting a combined fraud and AML approach (FRAML) have recorded cost savings exceeding US$5m, demonstrating the potential efficiency gains.
The rise of AI-powered financial crime is another concern, with 17% of banks noting the growing sophistication of adversaries using synthetic identities and automated fraud techniques.
Regulatory demands remain intense, with 17% struggling to keep up with evolving rules and enforcement actions. The risks of falling behind include fines, reputational damage, and operational disruption.
Finally, 7% of banks admit difficulty in staying ahead of emerging crime typologies. The report concludes that agile, data-driven compliance systems are essential to adapt quickly and meet new threats head-on.
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