LexisNexis Risk Solutions published its True Cost of Financial Crime Compliance Study on Wednesday morning
LexisNexis’ Risk Solutions business unit disclosed its True Cost of Financial Crime Compliance Study, which explores the impact of new regulations and COVID on financial crime compliance, while also showcasing new and emerging trends in the industry.
The analysis revealed that companies with increased compliancy saw financial reward and improved customer relations.
Of the firms that were studied in Asia-Pacific, compliance costs mounted to some US$12.06 billion, with 46 per cent of these costs realised in India.
Director, financial crime compliance APAC for LexisNexis Risk Solutions Douglas Wolfson demonstrated the depth of the impact of COVID on compliance.
“COVID-19 has undoubtedly impacted financial crime compliance operations and costs for financial institutions across the region,” Wolfson said.
“The pandemic compounded the current set of KYC (know your customer), alert resolution and sanction screening challenges and contributes conclusively to significant cost increases among all banks. Additional regional and international regulations will continue to spur the need for greater internal controls and more comprehensive risk-management technology platforms that help ensure compliance and lessen financial crime compliance cost.”