2020 proved to be a rough year for the financial services industry, with the Covid-19 pandemic bringing with it new challenges and exposing shortcomings within the sector. In 2021, the pandemic has continued to change the way compliance functions operate within organisations; hybrid working policies becoming more prevalent, the increasing volume of regulatory change, and the demand from boards to drive measurable cultures of unified compliance programs is mounting.
Using data from some of the most comprehensive global financial reports, we’ve produced our latest infographic summarising some of the top compliance challenges being faced in 2021. The data was gathered using the following reports:
Thomson Reuters, Cost of Compliance 2021: Shaping the Future – This 12th annual compliance survey, generated responses from over 720 practitioners worldwide, representing G-SIFIs, banks, insurers, asset and wealth managers, broker-dealers and payment services providers.
Deloitte, Anti-Money Laundering Preparedness Survey Report 2020 – A survey of leading banks and FIs covering the areas of AML governance framework, customer due diligence, sanctions and trade-based money laundering, and transaction monitoring systems.
Some key findings:
- The wider use of technology has also made some firms more likely to outsource compliance functions. A third (34%) of firms outsource all or part of their compliance functionality.
- Half (47%) of respondents expect the cost of senior compliance staff to increase (39% slightly more, 8% significantly more) in the next 12 months.
- 48% of banks and FIs said that insufficient or outdated AML compliance technology was one of their biggest compliance challenges.