ForteBank CCO Timur Mussin continues a discussion on the real cost of noncompliance with a look at the various penalties – reputational, financial and otherwise – associated with regulatory violations.
Read Part 1 here.
High-Risk Products
As part of fierce competition, organizations are improving their products and services, including through innovative solutions. At the same time, without considering the compliance and money laundering risks associated with these decisions, it is highly likely that the organization may encounter problems caused by insufficient elaboration of a new product or service, which in turn will entail sanctions by the regulator or complaints and lawsuits by clients.
An innovative product can bring significant profit to an organization, which can exceed the size of potential fines, but it can also deprive the organization of a license and the ability to continue to work in the market if certain regulations aren’t followed during its production.
For example, the risks of trading cryptocurrency are mainly related to its volatility and anonymity. They are high risk and speculative, and it is important that you understand the risks before you start working with it. By the way, crimes associated with cryptocurrency accounted for more than $4 billion in…
