The average total projected cost of financial crime compliance across all Indonesian financial institutions is $2.1B, up from $1.59B in 2019. With Indonesia named as one of the U.S. State Department’s major money laundering jurisdictions in 2019, the region remains vulnerable to money laundering and financial crimes. Financial institutions in Indonesia are facing the impacts of expanding regulatory demands along with rising compliance costs, complicated labor demands and pandemic-driven operating pressures.
The LexisNexis® True Cost of Financial Crime Compliance Study for Indonesia 2020 reflects the latest results from a comprehensive survey of banks and financial institutions.
Our study delivers a current snapshot into what’s top of mind for many industry leaders and illustrates the biggest financial crime compliance costs and operations challenges facing financial services firms in Indonesia today.
As the Indonesian Financial Transaction Reports and Analysis Centre (PPATK) pushes for the readiness of all parties involved in the Anti Money Laundering (AML) and Terrorism Funding Prevention Regime (APUPPT) in Indonesia, regulatory scrutiny is beginning to rise. Couple this expanding regulatory focus with the region’s inherent risks of financial crimes and money laundering and it is easy to see how compliance pressures are a main concern for Indonesian financial institutions. Our study breaks down collective challenges:
Our study results also provide in-depth perspective into how operations challenges and cost pressures stemming from the COVID-19 pandemic are testing financial institutions. The study illustrates the top five challenges compliance departments in Indonesia are experiencing during the COVID-19 pandemic and the resultant remote working period:
The study outlines how a multi-layered solution approach not only maximizes the effectiveness and cost-efficiency of key due diligence workflows, it also delivers insights for customer management activities and business opportunities across critical customer and third-party relationships.
See how your current financial crime compliance program compares to your peers in the Indonesian market. Explore the complete LexisNexis® True Cost of Financial Crime Compliance Study for Indonesia 2020 now.