Compliance departments under pressure and more de-banking to come says survey

Compliance departments are feeling increasingly under pressure by tougher regulatory expectations, according to a report released this month.

The Dow Jones Risk & Compliance and Association of Certified Anti-Money Laundering Specialists (ACAMS) survey released in March also says that many banks have exited certain business lines and expect to withdraw from even more in the future.

Regulatory pressures
Increased regulatory pressures on compliance departments are compounded by staff shortages and technology concerns, according to the report released at the 14th Annual International Anti-Money Laundering & Financial Crime Conference in Hollywood, Florida.

Nearly three quarters of those surveyed said that Foreign Account Tax Compliance Act (FATCA) regulations imposed by the US are a factor in increased workloads, while 52% mentioned the impending implementation of the 4th EU Money Laundering Directive.

More than half of companies said Ukraine-related sanctions, imposed in 2014, have also added to workloads.

De-banking concerns
More than one-third of those surveyed said their organisation has exited a full business line or segment of business in the past 12 months due to perceived regulatory risk, or the organisation’s inability to manage the risk.

About 30% of respondents report that their firms are planning to exit, or considering exiting, a business line or segment over the next year.



Categories: Trade Based Financial crimes News

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s