Preparing today's corporations for navigation of compliance maze

Regulators across the world have been zooming in on the corporate sector's efforts in complying with financial crime regulations. For many companies, this responsibility may be an unwelcome surprise, but by acting quickly, they can stay ahead of the curve and get ahead of the competition.

REGULATORY compliance has become a concern not only for financial institutions; increasingly, regulators are widening their focus and bringing corporates into the world of financial crime compliance. Non-compliance can attract heavy fines and the risk of reputational damage, which potentially results in loss of business.

Within the Asia-Pacific, the Monetary Authority of Singapore has set up a new department dedicated to combating money laundering, where a supervisory team will monitor illicit financing risks to strengthen enforcement, highlighting the increasing importance of compliance among businesses. A study by Asia Risk and Wolters Kluwer shows that the three greatest challenges facing financial organisations operating in the Asia-Pacific region in 2016 were compliance, operational risk management and financial risk management. More specifically, compliance is considered to be a major challenge by nearly 60 per cent of portfolio managers, but also by 62 per cent of respondents currently employed by asset managers and 60 per cent of those at securities firms across the region.