Forecast 2025: Building Smarter Defences: Operationalising Financial Crime Risk Management and Client Ratings in Financial Crime Compliance
At the recent Financial Crime Leaders’ Network, practitioners discussed the key developments and trends in regulation and risk.
Top of the list: The widening gulf between political rhetoric and regulatory reality. Despite commitments from regulators in the US and UK to reduce the regulatory burden and promote innovation, practitioners said the field of compliance has become more fragmented, not less. Developments in 2024 led to greater complexity, especially for firms operating across multiple jurisdictions. “It’s complicated, time-consuming, costly, and fragmented,” one participant said.
In previous decades, the US, UK, Canada, and European Union (EU) maintained relatively closely aligned financial crime frameworks, but the recent divergence in regulatory regimes makes life harder for banks: They face increasing difficulties in building controls that simultaneously satisfy competing local expectations. Multinational clients are affected the most, as firms struggle to offer harmonised services while shielding them from conflicting obligations.
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