ATLANTA, Jan. 19, 2021 /PRNewswire/ -- Today, LexisNexis®
Risk Solutions published an infographic summarizing the survey
results of U.S. and Canadian compliance professionals on the range
of challenges that financial institutions have experienced during
the COVID-19 pandemic. The survey outlines the issues that
many financial institutions encounter today and finds that the
pandemic continues to test the resilience and agility of businesses
across every market.
Respondents from banks, investment firms, asset managers and
insurance firms answered a series of questions that would help
determine the business impact that the pandemic has had on
compliance departments. The top three issues that compliance
departments within financial institutions have experienced during
the COVID-19 pandemic are:
- 42% face difficulty accessing information sources for Know Your
Customer (KYC) due diligence
- 41% realize challenges tied to delayed new account
onboarding
- 38% experience longer times to complete due diligence for
onboarding new accounts
COVID-19 protocols and subsequent remote working requirements
are also negatively impacting the effectiveness and efficiency of
key compliance activities. The compliance professionals surveyed
highlighted several important aspects of their positions that stand
out as particular problem areas. Percentage of compliance
professionals reporting negatively impacted areas:
- Customer risk profiling – 91%
- Sanctions screening – 83%
- KYC for account onboarding – 78%
- Efficient resolution of alerts – 74%
The ongoing pandemic-related pressures that compliance
departments face will likely also drive increased compliance costs
in the future. This is true for financial institutions of all
sizes. While technology seems to be a greater cost factor for
larger financial institutions, labor costs impact smaller
institutions on a greater scale.
- 79% expect COVID-19 to drive financial crime compliance costs
during the next 12 to 24 months
- 68% of the increased spend will be allocated to technology
resources due to COVID-19
- 32% of the increased costs will be spent on labor resources due
to COVID-19
"The events of 2020 have been unprecedented and financial
institutions must prepare for increased risk of financial crime for
the foreseeable future," said Leslie
Bailey, senior director of financial crime compliance
strategy for LexisNexis Risk Solutions. "Compliance teams can
optimize resources to better navigate the new normal brought by the
pandemic while maintaining the customer experience with a
multi-faceted approach that includes efficient technology,
intuitive analytics and extensive global risk intelligence."
Download a copy of the Impacts of the Global Pandemic on
Financial Crime Compliance infographic.
Methodology
The study surveyed 150 decision-makers in the U.S. and
Canada who oversee financial crime
compliance processes at their companies, including but not limited
to sanctions monitoring, Know Your Customer (KYC) remediation and
anti-money laundering (AML) transaction monitoring. Organizations
included banks, investment firms, asset management firms and
insurance firms. The total annual cost of compliance across firms
was calculated using survey data on financial crime costs, as a
percent of total assets and secondary data that provides the total
assets for all FIs in the U.S. and Canada. The spend amount was generated by
multiplying the average percent allocated to financial crime costs
by the reported total asset amount.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data and
advanced analytics to provide insights that help businesses and
governmental entities reduce risk and improve decisions to benefit
people around the globe. We provide data and technology solutions
for a wide range of industries including insurance, financial
services, healthcare and government. 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
www.risk.lexisnexis.com and www.relx.com.
Media Contacts:
Marcy
Theobald
LexisNexis® Risk Solutions
678.232.0948
marcy.theobald@lexisnexisrisk.com
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SOURCE LexisNexis Risk Solutions