Banks are connecting fraud and AML defenses but still missing links

71% of financial institutions are converging detection technology, yet 86% report missed links between fraud and money laundering, finds global survey by Datos Insights and SAS

CARY, N.C., Oct. 28, 2026 /PRNewswire/ -- Financial institutions are increasingly integrating their fraud and anti-money laundering (AML) systems, but intelligence and governance gaps remain. New fraud and AML convergence research from Datos Insights, commissioned by data and AI leader SAS, finds 86% report missed links between fraud activity and money laundering.

Fraud and AML Convergence: Closing the Speed Gap – based on a survey of 165 fraud and AML executives across 21 countries in seven global regions – examines the convergence of fraud prevention and AML compliance, commonly called FRAML. The report argues that real-time payments now move funds faster than institutions can connect their fraud and AML intelligence and intervene. Experts from Datos Insights, SAS and Amazon Web Services (AWS) will discuss the study's findings in a live "Future of FRAML" webinar on Nov. 2 (available later on demand).

"Fraud and AML teams can look at different pieces of the same risk and still miss the connection," said Serpil Hall, Strategic Advisor for Fraud and AML at Datos Insights. "Technology can help bridge those gaps, but technology alone is not the answer. The institutions making progress are also connecting data, case management, investigations and information sharing so they can see more of the risk in broader context and act sooner."

Shared infrastructure ≠ shared intelligence
Historically, banks' fraud and anti-money laundering units were not designed to operate as a unified function. Each answers to different regulations and runs on different legal clocks. Institutions are closing the gap where it's least disruptive: the technology. Meanwhile, changes that require people and process shifts lag behind. The result is connected systems but disconnected intelligence.

• 71% are actively converging fraud and AML detection and monitoring technology, but only 13% are doing the same for governance, policies and organizational structure.
• 72% run fraud and AML analytics on shared infrastructure but keep separate models and processes; just 1% report sharing data, models, infrastructure and governance across both functions.
• 87% describe their ability to build a unified view of customer risk across fraud and AML as partial, with significant gaps.

Silos remain the biggest barrier to greater alignment between fraud and AML. Nearly 9 in 10 (88%) institutions rate organizational silos, including separate reporting lines, as a primary or major barrier, ahead of technology limitations (73%) and data governance and quality issues (70%).

The strain is felt in day-to-day operations, too: 64% cite legacy technology among their biggest internal challenges, while 63% call out high false-positive rates.

Inside the speed gap: real-time payments, next-day detection
Fraud systems score transactions in milliseconds, while AML monitoring typically runs after the fact, often in overnight batches. As real-time payments become the norm, the margin between the two is fading.

Nearly three-quarters of institutions (73%) say their fraud and AML teams share data often or always during active investigations. That figure drops to just 17% for automated monitoring – the layer that works without someone needing to notice a problem first. The result is often a connection made after an investigation is initiated rather than one flagged automatically before money moves.

Operating separately carries measurable consequences, too, including duplicate alerts or cases, cited by 81% of institutions, and higher operating costs from duplicated teams or technology (71%).

"Financial crime convergence is a risk problem, not just a compliance exercise," said Stu Bradley, Senior Vice President of Risk, Fraud and Compliance Solutions at SAS. "Regulators will increasingly expect institutions to identify and prevent illicit behavior before the money laundering even starts. That's only possible when fraud and AML are working from the same strategic playbook and sharing data up front."

FRAML, from concept to market reality
The research findings arrive as fraud and AML convergence evolves from a long-discussed industry concept into a real-world operating model. Urgency is increasing as AI-charged scams, deepfakes, mule networks and real-time payments further blur traditional boundaries between fraud and money laundering.

"Many of the banks I speak with are already sharing data or exploring common case management, with the aim of getting fraud and AML working closer to real time," added Hall.

For institutions still early in the process, the report outlines practical first steps, such as connecting their existing fraud and financial crime compliance solutions rather than replacing them.

"Institutions don't have to rip and replace their entire financial crime ecosystem to make progress," said SAS' Bradley. "Modernize step by step. Start with the risks that matter most, strengthen data sharing across the monitoring lifecycle and ensure a shared investigative environment."

To explore how institutions can put the report's findings into practice, AWS and Datos Insights will join SAS for the live webinar Breaking the Silos: What Global Banks Reveal About the Future of FRAML on Nov. 2 at 10 a.m. EST / 4 p.m. CET, with on-demand viewing to follow.

Experts will discuss how banks are approaching fraud and AML convergence, the barriers slowing progress, and where data, analytics and AI can help institutions connect signals and identify financial crime earlier.

The full report is available at sas.com/framlreport.

About Datos Insights
Datos Insights is the leading research and advisory partner to the banking, insurance, securities, and payments industries, both the financial services firms and the technology providers who serve them.

In an era of rapid change, we empower firms across the financial services ecosystem to make high-stakes decisions with confidence and speed. Our distinctive combination of expert advice, proprietary data, and community provides actionable insights that enable clients to accelerate critical initiatives, inspire decisive action, and de-risk strategic investments to achieve faster, bolder transformation.

About SAS
SAS is a global leader in data and AI, helping organizations make confident decisions with AI they can trust. For decades, SAS has set the standard for delivering software that drives meaningful impact, incorporating deep industry expertise, transparency and governance. SAS gives you THE POWER TO KNOW^®.

SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2026 SAS Institute Inc. All rights reserved.

Danielle Bates | danielle.bates@sas.com | 919-531-1959 | sas.com/news