March 15, 2017
The year 2017 will be marked with uncertainty, as there are various regulatory amendments expected to take place. Globally, ~$80 billion is spent on governance, risk and compliance, and the market is only expected to grow, reaching $120 billion in the next five years. If compliance seems expensive, non-compliance will just knock out the common sense. Financial institutions in the US alone have paid more than $160 billion in fines for non-compliance.
Although the changes in regulation are likely to help banks and financial institutions get some breathing space, they need to be well prepared for new or updated requirements that are likely to be implemented. The potential impact of each regulatory agency's policy can affect the compliance strategy of financial institutions.
Regulatory reporting as a process is here to stay. While the impact of new regulations and changes is yet to be seen, some of the key challenges faced by banks are as follows: