Financial crime compliance

Article

Financial crime compliance

It is no longer sufficient to ‘go it alone’

Multiple factors make compliance with financial crime legislation one of the most difficult challenges facing the chief operating officers of banks and other financial institutions today.

Executive summary

First, the penalties applied for non-compliance are steep and only getting steeper, with billions of dollars of fines levied in the last 15 months. More costly still is the remedial expense of improving processes and adding personnel to cope with the increased workload
of preventing such action in the future. It is important to note that these costs are not limited to institutions that have been cited for violations; it is safe to say that nearly every financial institution is spending substantially more on financial crime compliance-related activities compared to just a few years ago.

This picture is further complicated by the diverse and constantly evolving nature of financial crime, including the fact that the rules differ across major jurisdictions and are subject to regular change. COOs face the reality that financial crime compliance is much harder to measure than other aspects of operational risk, making it more
difficult to define meaningful benchmarks for ‘what good looks like’.
 

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Inside magazine issue 4, March 2014

Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.

Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).
 

PDF file - size: 5.2mb
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