ATLANTA — Today, LexisNexis® Risk Solutions released its True Cost of Financial Crime Compliance Global Report, which provides global industry-driven insights for financial services firms across the Asia Pacific (APAC) region, Europe, the Middle East and Africa (EMEA), Latin America (LATAM) (including Mexico) and the U.S. and Canada. The report reveals that the projected total cost of financial crime compliance in these markets amounts to $180.9 billion.
The survey of 898 decision-makers who oversee financial crime compliance and compliance operations at their companies solicited responses on processes such as sanctions monitoring, know your customer (KYC) remediation, anti-money laundering (AML) and transaction monitoring, among others.
Key findings from the LexisNexis Risk Solutions True Cost of Financial Crime Compliance Global Report:
Daniel Wager, vice president, global financial crime compliance strategy for LexisNexis Risk Solutions, said, “As criminals become more sophisticated, a multi-layered solution approach to financial crime compliance is crucial to facilitating a more cost-effective, efficient compliance approach, as well as one that provides benefit to the larger organization. Financial institutions should investigate both the physical and digital identity attributes of their customers, leveraging data analytics to assess risks and behaviors in real time.”
Wager continued, “There is now an increased recognition among financial institutions that financial crime compliance initiatives provide broader benefits. Utilizing the right technologies as compliance workforces grow allows organizations to decrease the cost of compliance per full time equivalent (the labor component) and mitigate costs associated with lost business due to increased friction at onboarding. Keeping FTE costs lower is essential to profitability, since labor tends to account for significant increased compliance expenses year-over-year.”
Download the True Cost of Financial Crime Compliance Global Report.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers across industries. For more information, please visit www.risk.lexisnexis.com and www.relx.com.