Financial crimes compliance has historically been solely the realm of banks and financial institutions. Sujata Dasgupta discusses how and why customers are taking a larger role in ensuring their own compliance.
Financial crimes compliance (FCC) in banks has traditionally been an internal function, spread across front, mid and back offices. Customers have never been involved in this function, unlike the other banking operations like deposits, loans, payments and so on. Whether branch banking or online/mobile banking, the FCC has been kept insulated from customers due to its serious and confidential nature.
The FCC is a non-revenue generating operation, but banks have been spending huge amounts on people, processes and technologies to remain compliant with all FCC obligations. The regulatory environment in this space having become extremely dynamic, banks are facing huge challenges in meeting those mandatory obligations, which essentially involves huge manual efforts. A lot of the technology spend we are witnessing in recent times in the compliance profession is aimed at addressing such challenges while also making the FCC process more effective.
Emergence of Customer-Driven Compliance
Banks globally have been adopting digital innovations in a big way across almost all lines of businesses. The FCC has also been…
