True Cost of Financial Crime Compliance Study – Latin America Reveals Organizations Prioritizing Cost Reduction While Ensuring Regulatory Adherence
04/17/2024
ATLANTA — LexisNexis® Risk Solutions released the findings of its latest True Cost of Financial Crime Compliance Study – Latin America. The commissioned study, conducted by Forrester Consulting, reveals that financial crime compliance costs have increased for 97% of financial institutions in 2023. The total cost of financial crime compliance in Latin America has reached U.S.$15 billion.
Financial institutions (FIs) are seeking ways to reduce costs while complying with regulations, with 39% identifying the escalation of financial crime regulations and regulatory expectations as the primary factor driving increases in compliance costs. Sixty-nine percent (69%) of FIs are prioritizing compliance program cost cutting in the next 12 months.
Sixty-seven percent of financial institutions witnessed higher increases in compliance costs related to labor in each of Brazil, Colombia and Mexico, emphasizing the investment needed in highly qualified resources to meet stringent compliance requirements.
Key findings from the study:
“The cost of financial crime compliance is clearly rising for financial institutions across Latin America which is being felt by teams across the compliance workflow,” said Matt Michaud, Global Head of Financial Crime Compliance at LexisNexis Risk Solutions. “Skilled in-house compliance teams are essential, but businesses should be actively seeking ways to reduce labor costs while improving compliance efficiency. Criminals adapt quickly and FIs require a partner with advanced tools, data and analytics to not only keep pace but to stay ahead."
The True Cost of Financial Crime Compliance Study – Latin America compiles responses from 268 senior decision-makers responsible for financial crime compliance at financial institutions in the LATAM region including Brazil, Chile, Colombia, Mexico and Panama. It highlights key pain points related to the cost, current state and challenges presented by financial crime compliance operations.
Recommendations for combating financial crime:
Download the latest True Cost of Financial Crime Compliance Study – Latin America, available in Spanish and Portuguese only.
Methodology
Forrester conducted a global online survey of 1,181 senior decision-makers at financial institutions to evaluate the cost, current state and challenges presented by financial crime compliance operations. The study began in May 2023 and was completed in June 2023. Two hundred and sixty-eight (268) survey participants were from Latin America, including Brazil, Chile, Colombia, Mexico and Panama. The survey asked participants about organizational priorities, exposure to financial crime activities, financial crime spending and factors driving an increase in financial crime costs, challenges in compliance screening operations, the benefits of financial crime operations and future implementation plans.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. 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-based analytics and decision tools for professional and business customers. For more information, please visit LexisNexis Risk Solutions and RELX.
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