Coping with the rising regulatory bar for financial crime compliance

ASK any financial institution (FI) leader in Singapore what keeps him or her awake at night, and financial crime compliance (FCC) will rank top of mind. This insomnia is likely caused by a rapidly rising regulatory bar that is monumentally impacting the industry.

As it stands, the regulator has set a strict tone with regard to governance and customer due diligence (CDD) processes, strength of internal controls and scrutiny of transactions; and the Monetary Authority of Singapore (MAS) has been clear that the industry needs to pay attention and ensure the soundness of its anti-money laundering (AML) compliance framework. In this landscape, compliance will only get more challenging and costly.

Getting the FCC operating model right may appear simple. However, the more complex the FI and its business are, the more challenging it is to administer control and surveillance. In addition to the "business as usual" activities, ensuring effective responses to address regulatory changes demands equal attention.