Money-laundering activities should have received a fatal blow from the scandals revealed in such documents as the Panama Papers, but recent events paint a different picture: the offshore finance industry and money laundering continue to be alive and well! Financial institutions that find AML compliance an escalating struggle are not alone, but the costs of non-compliance are even more taxing. It’s past time for banks to take a closer look at their client portfolios.
The word compliance may hit a sour note for some bankers, but in the end, compliance demonstrates commitment to transparency, integrity and best practices. If only compliance wasn’t so complicated and costly. Effective data archiving is necessary to make data repositories what they must be. Most banks archive data, but many need to upgrade their processes. What are the five elements that financial firms should include in their data-archiving overhauls?
The Great Recession produced a number of aftershocks, including a tidal wave of regulations (with the?) intent on preventing the same event from ever happening again. A mismatch between increasingly complex and detailed international standards and ever more uneven implementation by national authorities ensued. Consistent, harmonized adoption of financial standards by all involved is necessary to ensure smooth global processes. Some suggestions are presented in this article.
If last year was any indication of what financial markets will look like in 2019, we are in for a very bumpy ride. Last December alone, the Dow Jones Industrial Average fell and rose more than 8 percent as finance experts struggled to make heads or tails of a bizarre political climate, unsteady interest rates and global tariffs.
In the decade following the global financial crisis, banks have faced a flood of new laws and regulations. The pace of change has been furious. Banks have been forced to hire more and more bodies to manage large, enterprise-wide efforts in an attempt to simply stay ahead of regulatory enforcement actions and the ensuing fines and penalties.
The decade following the financial crisis unleashed a torrent of regulatory requirements. Financial institutions have spent billions on technology and operations to achieve regulatory compliance; the frequency of new requirements is high. Despite all of this, regulators have not been satisfied with the quality of the data and level of transparency. How can banks and regulators strike a balance between the costs and the benefits of regulation?
The Reserve Bank of New Zealand (RBNZ) regulates banks operating in the country to ensure a safe and efficient domestic financial system, but a high percentage of bank assets that fall under its domain are foreign owned, leading to the challenge of compliance with the bank’s home regulations and New Zealand’s, as its host. However, foreign-owned banks can and do thrive in New Zealand’s soundly maintained financial sector.
Ten years ago, the 2008 financial crisis not only made headlines – it also signaled a fundamental shift in how the global banking system operates. Several regulations were put into effect to increase transparency and protect global markets
All over the world, regulations have been implemented to protect economies, especially following the major recession 10 years ago. But unfortunately they have not always been executed in concert, leading to costly regulatory fragmentation. Banks have been particularly hard hit by the costs of compliance to misaligned regulation, with resources being drained away from more productive areas. But there are ways to mend these divergences, starting with cooperation between regulators.
The global financial crisis of 2007-08 left many marks behind, not the least of which has been increasingly complex financial regulation that has not been easy to uniformly enforce; meanwhile, digital technology is looming ever larger but has been relatively ignored by regulators, who are still coping with the decade-old crisis. The international regulatory debate should move towards a more forward-looking approach.