The compliance curmudgeons
The tensions that exist between those who regulate and those who are regulated are as timeless as Shakespeare. So it's hardly surprising that the first annual risk-based compliance survey conducted by Operational Risk magazine and risk consultants Protiviti points to potential conflicts that will arise from the implementation of business continuity, corporate governance, and anti-money laundering regulations.
Indeed, it seems that bank executives are just a bit cynical about compliance – about both the cost and the logic behind some of the initiatives thrust upon them. Meanwhile, regulators seem to be churning out tons of the stuff – rules, laws and guidance.
So just how will the concept of 'risk-based compliance' change all this? It sounds good, but look more closely. A regulator's top priority may not even appear on a firm's radar screen. Money laundering is a good example – until September 11 kicked AML programmes into high gear, for many banks those who are now deemed to be 'high risk' were previously labelled 'high return' customers. So, it seems, although the concept of 'risk-based' regulation sounds enticing, it will take a lot of work both by the industry and supervisors to prove that it isn't just what we're used to, wrapped up in a different package.
Ellen Leander, Editor
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Prop shops recoil from EU’s ‘ill-fitting’ capital regime
Large proprietary trading firms complain they are subject to hand-me-down rules originally designed for banks
Revealed: the three EU banks applying for IMA approval
BNP Paribas, Deutsche Bank and Intesa Sanpaolo ask ECB to use internal models for FRTB
FCA presses UK non-banks to put their affairs in order
Greater scrutiny of wind-down plans by regulator could alter capital and liquidity requirements
Industry calls for major rethink of Basel III rules
Isda AGM: Divergence on implementation suggests rules could be flawed, bankers say
Saudi Arabia poised to become clean netting jurisdiction
Isda AGM: Netting regulation awaiting final approvals from regulators
Japanese megabanks shun internal models as FRTB bites
Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025
CFTC chair backs easing of G-Sib surcharge in Basel endgame
Isda AGM: Fed’s proposed surcharge changes could hike client clearing cost by 80%
UK investment firms feeling the heat on prudential rules
Signs firms are falling behind FCA’s expectations on wind-down and liquidity risk management