As it turns out, the answer is simple: You need to develop your AML department like a professional sports team – gather a healthy balance of veterans, free agent acquisitions, and a strong core of promising rookies developed by your farm system.
On its face, this might appear as an oversimplified metaphor to a pressing issue, but my work with financial institutions around the country suggests otherwise.
The classic hiring mishap occurs when AML compliance and operations folk limit their hiring pool to persons with “industry designations” and “multiple years of experience” at the Analyst level. Of course, those are well-established qualifications, but the fact of the matter is those people are in high demand, short supply, and oftentimes come with bad habits learned from previous employers.
You will miss a significant number of slam dunk Analyst hires if you focus on industry designations and experience alone.
So what should you focus on in the hiring process? Look for smart people. Focus on individuals – irrespective of background – who possess the five unassailable qualities of a good Analyst: (1) reading ability; (2) curiosity; (3) writing ability; (4) research skills; and (5) attitude (“the Five Qualities”).
Some or all of the Five Qualities are omnipresent in virtually every aspect of the Analyst’s role. If you cannot find Analysts with designations or experience, then you need to identify and recruit people with the Five Qualities and make them into good Analysts yourself.