Banks are seeing a significant change in terms of new and strengthened regulatory compliance demands by regulators globally. Even though banking processes have changed and become much more efficient and transparent than before, the need to further lower compliance costs is still a key priority.
Sanctions monitoring, KYC remediation, anti-money laundering (AML) measures, and transaction monitoring are some of the costliest elements of compliance. Fines imposed by regulators for non-compliance are the other elements of compliance costs.
Compliance Cost for AML and KYC Fines Hit Banks Globally
The cost of compliance is expected to cross $181 billion in 2020. Since the Great Recession, financial services firms the world over have been hit by $36 billion in fines for non-compliance with anti-money laundering, know your cust …