Bridging the Gap Between Technology and Compliance
The main challenge for compliance continues to be the ongoing radical changes in the regulatory landscape. Particularly relevant for financial institutions, regulators around the world are responding to political and public demands designed to restore the stability of the economy and the financial system and prevent another financial crisis from happening. In addition, institutions face tightening requirements on many other topics such as economic sanctions, tax reporting obligations, data protection, IT security as well as the prevention of money laundering and the financing of terrorism.
“Compliance is most successful if it is deeply embedded into the business processes which eliminates human failures”
For financial institutions acting in many jurisdictions across the globe, an additional challenge derives from the sometimes conflicting and often even contradicting laws and regulations. As resources remain to be tight, Compliance must focus on the further automation of compliance. Compliance is most successful if it is deeply embedded into the business processes which eliminate human failures. Hence, embedding compliance into systems, i.e., further investing into technology, is going to be one of the most relevant responses to the challenges ahead.