Examination of an Industry Report
Insights Unveiled: An Examination of the Annual State of the Industry Report
In our ever-evolving financial landscape, staying ahead of the curve is essential for organizations combating financial crime. Comply Advantage is a great company to subscribe to for deep dive statistical reports. The company has produced their annual State of the Industry Report, derived from a comprehensive global survey of 600 senior financial crime decision-makers. It provides a roadmap for the year ahead. Packed with insights and practical tips from Regulatory Affairs experts, the report delves into key trends that will shape the compliance landscape.
One striking revelation is the embrace of artificial intelligence (AI) and automation, with 89% of surveyed firms comfortable compromising explainability for automation in their Anti-Money Laundering (AML) tech stacks. Many of the seminars and conferences in 2023 saw the evolution of AI being embraced and accepted. However, the report questions how these attitudes align with regulators' expectations, sparking a crucial conversation about the balance between innovation and regulatory compliance.
With 61% anticipating a more risk-averse approach to Politically Exposed Persons (PEPs) in the next 12 months, the report raises concerns about the ability of organizations to adapt to changing volumes of PEPs, especially with over 40 national elections scheduled for 2024. The intersection of PEPs and elections adds a layer of complexity that demands strategic foresight.
Real-time payments emerge as a dominant theme, with 90% of surveyed firms either joining or planning to join real-time payments programs. We are excited to see the continued growth and commitment from the fintech payment sector. The report highlights the imperative for organizations to prepare their AML programs for the faster pace of real-time payments, emphasizing the need for agility and adaptability.
In response to the growing complexity of financial crime, 49% of firms plan to add new technologies or capabilities, while 46% aim to upskill their compliance teams. The report prompts a critical examination of whether these investments can keep pace with the ever-evolving nature of financial threats.
As organizations navigate the intricate landscape of financial crime, this Report serves as an invaluable guide, providing actionable insights for the challenges and opportunities that lie ahead.
Your organization deserves the best. Let us be your trusted partner in preparing for these changes. Contact us today to embark on a transformative journey toward a brighter future.
