Fortent Survey Cites Banks' Concerns About New Risks, Even as They Struggle with Financial Crisis
New types of payment methods, including mobile banking, pre-paid cards, and ‘virtual world’ transactions, are expected to be a hot area of regulatory interest, according to a new survey of senior anti-money laundering (AML) compliance officers in North America and Europe, conducted by risk and compliance specialist Fortent. Survey respondents also cited identity theft as ‘presenting the greatest emerging threat’ to their institutions in the area of financial crime.
“The expansion of payment platforms, while good for business, poses new risks on both the regulatory and security fronts,” says Ed Baum, Fortent’s chief marketing officer. “Our survey reveals that financial institutions are acutely aware that they must respond to these emerging threats. Financial institutions are finalising their budgets now for next year, and the question on everyone’s mind is how they are going to tackle these new threats when staff, technology, and training resources are already stretched.”
The survey’s key findings about financial crime threats include:
In addition, the survey showed other trends facing compliance departments today:
“Staying ahead of criminals is always challenging, and it is even more so in this economy,” says Ed Baum. “But banks know that reducing their exposure to financial crime risk – both from a regulatory and a financial perspective – is essential to staying in business.”
About the survey
Executives from 30 global, national, and regional financial institutions participated in the survey. They represented banks based in the US, as well as overseas, with asset size ranging from US$5bn to more than US$1 trillion. Survey respondents represented senior levels of their institutions’ compliance programmes, with titles including SVP Regulatory Risk Management, AML Program Deputy Director, and Compliance Director.