Financial Crime Compliance

Balance Financial Crime Compliance and Core Business Goals

Our study details the most pervasive financial crime compliance challenges for institutions in Singapore. Maximize due diligence efficiencies and manage costs with a risk-responsive strategy.

Singapore True Cost of Financial Crime Compliance Study

         

Capture Efficiencies Without Compromising Financial Crime Compliance

Financial Crime Compliance

The total projected cost of financial crime compliance across Singapore financial firms jumped 22% between 2019 and 2020, from $3.13B to $3.81B. Financial services firms across Singapore are navigating rising compliance costs, increased labor demands, pandemic-driven operating pressures and a turbulent financial crime threat landscape.

The LexisNexis® True Cost of Financial Crime Compliance Study for Singapore 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 Singapore today.

The study details how financial crime compliance costs have risen by double-digits and illustrates the factors fueling this increase:

  • The total projected cost of financial crime compliance across all financial firms in Singapore is $3.81B for 2020
  • 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 organisation is $16.80 million
  • 57% of financial crime compliance operations costs are dedicated to labor, 41% are dedicated to technology
  • The average number of Full Time Equivalents (FTE) needed to staff a compliance team has grown to 68 for mid/large financial institutions 

The study delivers deeper perspective into how financial institutions in Singapore are dealing with a broader set of compliance challenges in 2020 stemming from more rigorous Anti-Money Laundering/Counter-Terrorism Financing oversight from the Monetary Authority of Singapore and the implementation of the Payment Services Act:

  • 78% of Singaporean financial firms expect alert volumes to increase this year
  • 6.5 hours is the median time to clear alerts for AML transaction monitoring, periodic watchlist filtering sanctions and Know Your Customer/customer due diligence
  • 61% of Singaporean financial firms feel financial crime compliance has a negative impact on productivity with a majority losing at least 50 or more hours of productivity per FTE annually due to compliance complexities
  • 46% of Singaporean financial firms feel financial crime compliance has a negative impact on customer acquisition, and a majority of firms surveyed are now losing 3%+ of new customer opportunities due to refused accounts/walkouts during onboarding
  • Retail/e-Commerce, real estate and legal/accounting services pose the highest money laundering risk for Singaporean financial firms and require extra due diligence time and attention

Benchmark your response to today’s rapidly changing market conditions and escalating financial crime compliance demands against your business peers in the Singapore market. Find new insights for navigating current challenges and reducing the impacts of compliance on productivity and customer acquisition.

Explore the complete LexisNexis® True Cost of Financial Crime Compliance Study for Singapore 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, Philippines

The average total projected cost of financial crime compliance across all financial institutions in the Philippines has risen 44%.
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