2020 ended a record decade in terms of compliance fines as the fallout of the global financial crisis of 2007/2008 materialized on banks’ balance sheets. The full force of authorities came down on financial institutions for the wrongdoings that brought the financial world to the brink of collapse. These penalties weren’t the misselling of mortgage backed securities and toxic assets though; regulators punished financial institutions for a wide range of shortcomings, from sanctions violations, forex and interest rate manipulation, consumer protection breaches, AML deficiencies, tax evasion and other violations of financial regulations.
Compliance fines combined with an ever increasing number of regulations, has increased the cost of doing business drastically and regulatory compliance accounts at some organisations for 10% of the overall operating costs.
It is one of several arguments that has contributed to the rise of RegTech and as a result 2020 has been predicted to bethe global year of RegTech. Experts forecast that investment will have increased by 500% by the end the year.
Encompass, the creator of unique, innovative Know Your Customer automation software for the banking, finance, legal and accountancy sectors, has published an article that provides you with all the numbers and tells you that the global rise begins – or does it? Read about it here.
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