As compliance regulations grow in complexity, organizations will need to both protect their reputation and avoid costly enforcement actions. LexisNexis Risk Solutions’ Leslie Bailey discusses how best to manage the challenge.
Anti-money laundering (AML) compliance costs have continued to increase at a dramatic pace. Our recent study projected that the cost of compliance for U.S. and Canadian financial services firms will total $31.5 billion this year. For large and small banks alike, the compliance landscape is complicated by rigorous and evolving regulatory demands, stringent sanctions requirements and a rapidly growing footprint of non-bank payment providers.
The report, devised from a survey of nearly 150 financial crime compliance executives at banks, as well as investment, asset management and insurance firms, found that AML compliance costs increased by 16 percent on average over the last 24 months for U.S. financial services firms, with Canadian firms seeing a 6 percent rise over the same period. Those numbers are expected to keep rising.
Keeping pace with the current environment of escalating, continually evolving global regulatory requirements places a great deal of cost and operational burdens on financial services firms. Balancing optimal compliance with core business objectives and competitive…
