According to a joint survey by SWIFT and Dow Jones, 54% of compliance execs are to increase RegTech spending as geopolitical risks heighten.
An annual joint survey of more than 500 compliance and anti-money laundering professionals by SWIFT and Dow Jones has found that 75% of respondents believe the current geopolitical landscape presents new risks and challenges for preventing financial crime at their organizations.
To mitigate these risks, 54% of respondents are planning to increase their RegTech spending in the next three to five years. Commenting on the findings, Joel Lange, Managing Director of Dow Jones Risk & Compliance, stated,
“The shifting geopolitical environment has created an additional layer of complexity for tackling financial crime around the world. As the political and economic landscape continues to impact international trade, data protection, and tax cooperation, the need for greater transparency and more effective information sharing across borders is more important than ever.”
Paul Taylor, Director of Compliance Services at SWIFT, said, “Technology can play a key role in providing new and enhanced capabilities that strike a balance between preventing criminal activity, meeting regulatory requirements and containing costs.”
“The most sophisticated financial crime compliance solutions help mitigate risks and boost efficiency in several ways, from managing workloads to automating payments monitoring and reducing false positives, enabling compliance teams to focus on more strategic risk policy and financial crime prevention work,” he continued.
Other notable findings from the survey include:
- 69% of respondents said increased regulatory expectations represent the greatest challenge followed by concerns surrounding increased enforcement of current regulations at 50%.
- 59% of respondents said that technology had improved their company’s ability to tackle AML, KYC and sanctions requirements.
- 57% of respondents stated that the greatest AML-related challenge currently facing organizations is having enough trained staff, followed by the reliance on outdated technology at 48%.
- 70% of respondents cited specific regulations such as the OFAC and EU 50% Rules as well as the FinCEN CDD Rule as contributing to increased workloads for compliance departments.
- Over 50% of respondents said that FATCA and the 4th EU Money Laundering Directive are regulations that add to existing workloads.
More here [globenewswire]
This article was originally published on TheFintechBuzz