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Banks turn to regtech as new risks arise in compliance environment - survey

A survey by SWIFT and Dow Jones Risk & Compliance suggests that three-quarters of anti-money laundering (AML) professionals working in banks see new risks and challenges for preventing financial crime within their organisations. The survey assesses the current regulatory environment and the impact of new regulation on international and regional banks’ compliance departments.

With more than 500 replies from compliance and anti-money laundering professionals working in banks around the world, the results show that:

  • 75 per cent of bank compliance professionals said that, in the current geopolitical landscape, they see new risks and challenges for preventing financial crime in their organisations;
  • 54 per cent are planning to increase their investment in regulatory technology (regtech) in the next three to five years;
  • 59 per cent say technology has improved their company’s ability to tackle AML, KYC and sanctions requirements;
  • 69 per cent of respondents said that increased regulatory expectations represent the greatest challenge;
  • half said that the greatest challenge was increased enforcement of current regulations;
  • 42 per cent said their greatest challenge was the need to understand regulation outside of their home jurisdiction;
  • 70 per cent of respondents cited specific regulations, such as the Ofac and EU 50% Rules, as well as the FinCEN CDD Rule, as contributing to increased workloads for compliance departments;
  • more than half of respondents said Fatca and the Fourth EU Money Laundering Directive are regulations that add to existing workloads.

Joel Lange, of Dow Jones Risk & Compliance, said: “The shifting geopolitical environment has created an additional layer of complexity for tackling financial crime around the world. As the political and economic landscape continues to impact international trade, data protection, and tax cooperation, the need for greater transparency and more effective information sharing across borders is more important than ever.”


CTMfile take: This survey shows that banks are dedicating an increasing amount of time and resources to complying with regional and global regulations, whether AML, KYC or tax-related. Does this survey also reflect your experience of the regulatory environment? Are corporates also turning to 'regtech' to ease their compliance burdens? If so, how are you using technology to make your regulatory obligations easier?


This item appears in the following sections:
Fraud Prevention
Anti-Money Laundering Fraud Prevention
ID Systems & Services in Fraud Prevention
Minimizing Fraud Procedures
Minimizing Payment Fraud
Evaluating Banks' Overall Performance

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