ComplyAdvantage Predicts Landmark Year for Fintech Industry Compliance Professionals

The team at ComplyAdvantage has released their new report, titled The State of Financial Crime 2022.

ComplyAdvantage’s outlook for 2022: From supply chains in crisis to “high-wire” geopolitical standoffs and the implementation of updated regulatory frameworks, it’s going to be “a landmark year for compliance professionals.”

Towards the end of last year, ComplyAdvantage reportedly interviewed 800 C-suite and senior compliance decision-makers across North America, Europe and Asia-Pacific. The respondents “represented enterprise banking, investments, crypto, insurance organizations, and Fintechs.”

Their answers offer key insights into the major trends that may shape the year ahead. By looking back to the 2020 survey, for which ComplyAdvantage interviewed 600 people, it’s also possible to “explore challenges, problems and priorities that have risen and fallen over the last 12 months.”

With much of the international agenda dominated again by the COVID-19 crisis, it might easily be assumed that the compliance challenges identified in 2022 could be similar to those identified in the previous year.

But whereas last year saw a major focus on adaptation via an international pivot to remote working and large stimulus programs, 2022 will be “the year of adjustment.”

One notable example of this in the survey relates to “predicate offenses.” When asked for the top predicate offenses companies are screening against in 2020, 61% “cited fraud amid widespread reporting about fraudulent activity related to COVID-19 relief funds.”

By 2021, the percentage of respondents citing fraud had “dropped dramatically to 37%.” Instead, cybercrime was “listed as the most important predicate offense firms are screening against, followed by tax crime.”

As these figures suggest, “challenges outside of the pandemic are emerging.” Following key sessions at COP26, as well as the G7 and G20 summits, it’s likely environmental crime “will be a major theme this year.” Relations between the major Western powers, China and Russia will “continue to be strained.”

The report from ComplyAdvantage further noted that the regulation of crypto firms and virtual asset service providers (VASPs) will “remain high on the agenda for 2022.”

This has been “a core priority of the Financial Action Task Force’s (FATF) German Presidency.” With 98% of companies stating that they’re either crypto-native, accept/work with crypto or plan to offer crypto-based services in the future, “how these are regulated — and the risk of arbitrage — is set to be a closely watched theme this year.”

According to ComplyAdvantage:

“Another key focus has been the exploration and implementation of new technologies, which our survey indicates is also a top priority for firms globally. Organizations continue to look to upgrade legacy systems, manage their data more effectively and access AML risk data in real time. The number of firms saying real-time AML risk data would “significantly” improve their compliance operations increased by 15 percentage points in 2021.”

The firm added:

“Overall, in a year set to be defined by uncertainty and volatility, firms will need both a comprehensive risk-based approach and a willingness to reevaluate services, markets and customers at short notice.”

You may review the complete report here.



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