Financial Crime Compliance

Prioritize an Effective Financial Crime Compliance Strategy  

Our study details the current financial crime compliance climate in the Philippines and highlights how a multi-layered approach can better protect against ongoing money laundering challenges.

Philippines True Cost of Financial Crime Compliance Study

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Improve Your Approach to Financial Crime Compliance

Financial Crime Compliance

The total projected cost of financial crime compliance across Philippine financial firms has grown from $480M to $690M in the last year. With the Philippines currently under observation by the Financial Action Task Force, regulatory scrutiny is running high.

Financial institutions in the Philippines are navigating evolving expectations and expanding regulatory oversight in addition to rising compliance costs, complicated labor demands and pandemic-driven operating pressures. The LexisNexis® True Cost of Financial Crime Compliance Study for The Philippines 2020 reflects the latest results from a comprehensive survey of banks and financial institutions. 

Financial institutions in the Philippines already operate in a region rife with risks stemming from human trafficking, environmental crimes, narcotics trafficking, terrorism financing and more. Our study details how the pressures of this volatile business climate coupled with increasing regulatory attention and oversight impacts cots and operating efficiencies as financial institutions take a front-line role in preventing financial crimes.  

The study details the factors driving increases in financial crime compliance costs: 

  • The total projected cost of financial crime compliance across all financial firms in the Philippines is $690M for 2020 
  • The average total projected cost of financial crime compliance across all financial institutions in the Philippines has risen 44%
  • Based on survey findings, financial crime compliance professionals attribute 12%, on average, of recent cost increases to the COVID-19 impact
  • Average annual financial crime compliance operations costs per organization is $14.80 million
  • 59% of financial crime compliance operations costs are dedicated to labor, 39% are dedicated to technology
  • The average number of Full Time Equivalents (FTE) on a compliance staff is 67 for mid/large financial institutions

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 the Philippines are experiencing during the COVID-19 pandemic and the resultant remote working period.

Finally, the study takes a closer look at the enterprise benefits of an effective financial crime compliance program. 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. 

In addition, the study provides numbers that illustrate how financial institutions that have invested in technology solutions to support financial crime compliance workflows have experienced smaller cost increases and less negative impacts from COVID-19.  
 
Explore the complete LexisNexis® True Cost of Financial Crime Compliance Study for the Philippines 2020 now.  

True Cost of Financial Crime Compliance, Regional Report

The cost of financial crime compliance has soared significantly for larger financial institutions in key Asia Pacific markets. 

True Cost of Financial Crime Compliance, India

83% of Indian financial firms expect alert volumes to increase in 2021.

True Cost of Financial Crime Compliance, Indonesia

51% of financial firms in Indonesia are losing at least 25 or more hours of productivity per FTE due to compliance challenges.

True Cost of Financial Crime Compliance, Singapore

46% of Singaporean financial firms feel financial crime compliance has a negative impact on customer acquisition 
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