Financial institutions and other companies will spend 7.4 percent more this year on compliance, risk management and corporate governance, according to a survey issued by AMR Research Inc. American, German and Japanese companies will spend approximately $32.1 billion on identifying and managing risk this year, or $2.44 million per organization on average, according to Boston-based AMR. U.S. companies will bear the greatest costs on average, at $3.11 million per organization, the report found. Risk management will overtake financial governance as the top focus for companies. Some 32 percent of survey respondents in the United States cited the need to better...
In every longstanding relationship, there comes a point when both parties begin to question something they once thought they had agreed on. Talk to a Bank Secrecy Act officer at a conference, over dinner or in a bar and one point of friction with federal regulators inevitably becomes clear.
If March's record penalty against Wells Fargo & Co. has reminded compliance departments of the bite of anti-money laundering regulatory fines, it has also been a reminder of something else. With acquisitions come problems.
As more and more financial institutions rocked by the deepening mortgage crisis announce painful job cuts, anti-money laundering compliance officers must take quick action to protect their departments, compliance consultants say.
Adjusting prices to account for money laundering risk is akin to charging a customer with a poor credit history a higher interest rate, say both compliance consultants and banking executives, who consider the strategy a logical extension of the industry shift to risk-based AML programs.
The report, published by the Boston-based consultancy Aite Group, found that most banks surveyed named AML as their most important compliance issue, beating out data security and consumer privacy issues.