Regulatory enforcement actions are putting the financial services industry on notice that anti-money laundering (“AML”) compliance is a leading enforcement priority. This renewed focus, and the increasingly complex technology challenges associated with meeting the new requirements, are straining compliance programmes, staff, and technology resources.
Alongside this trend, other institutions, such as fintech companies and the local branches of international banks, are increasingly being scrutinised by the authorities. In some cases, institutions have been banned from entering new business sectors by the authorities until they comply with regulations in their existing operations.
The growing challenge for chief compliance officers
Banks and, in particular, their chief compliance officers, therefore need to improve and extend their AML capabilities.
However, the cost of implementing a surveillance system across new sectors and new businesses is expensive and often
simply not feasible.