Jody Houton

The world of financial compliance changed irreversibly last year. 

During the 2020 migration, from the trading floor to the home, the risk map for compliance breaches grew larger and more complex.  

And as finance professionals continue to work remotely, across a fully digital and decentralized workplace, a new multi-pronged approach to ensure regulatory compliance has become essential.

An approach that relies on an increased use of surveillance technology, along with more input from government officials, according to the recently released Compliance Effectiveness and Risks Survey, by the Association of Certified Anti-Money Laundering Specialists.

What Needs to be Done

The Survey, which interviewed global financial experts from international banks, government, financial regulatory bodies, fintechs and legal sectors, reveals a general consensus that more needs to be done to assist compliance officers in their attempts to prevent financial crime, such as money laundering.

Indeed, the threat of fines does not appear to be a sufficient-enough deterrent, with just over half of all respondents believing monetary penalties are only effective as a preventative measure in limited instances.

This begs the question that if multi-million dollar financial fines are not enough to deter financial institutions from engaging in financial crime, then what do financial experts from around the world suggest needs to happen to create an effective compliance program?

  • 88% cited the adoption of new technological tools as a top priority for meeting regulatory expectations.
  • 85% said more specific feedback from governmental authorities on how to improve compliance reporting was needed.
  • 81% said that the availability of additional compliance funding or resources was important.
  • 79% cited the importance of regulatory amendments and supervisory reforms would be important. In particular, reforms that give institutions more discretion to focus on their biggest crime risks, even if it means directing fewer resources toward addressing lesser risks.
  • 76% of respondents said that further guidance and examples from regulatory bodies on activities not required by law or regulation was instrumental in creating an effective compliance program.
  • Just under three quarters (73%) said that they required more input from governmental authorities on how to best deploy compliance resources to address the priorities of law enforcement and regulatory officials.

Behavox Compliance assists financial institutions in creating an effective compliance program for 2021 and beyond.

Whether it’s traditional business communication platforms, like Bloomberg Chat and emails, or non-corporate channels, such as WhatsApp and WeChat, Behavox Compliance enables enterprises to proactively identify and mitigate risk of non-compliant behavior — before it’s too late.