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