The effects of increased compliance requirements when it comes to the Money Laundering Act have received a great deal of media attention recently. Banks that do not follow the rules and thus receive high fines, new industries that are added to now be affected by the law and thorough investigations of activities by authorities are just some of the latest headlines. The new regulations for compliance have led to an increase in manual work - and costs - for those who are obliged to follow the rules.
Organizations around the world, especially in finance, spend billions of dollars every year to ensure compliance. The biggest issue? Manual handling and assessment. According to surveys, manual labour in compliance work accounts for between 50-70% of the cost share.
List: 3 ways to reduce compliance costs
1. Automation & Digitization
More than 50% of costs associated with compliance work, regardless of company size or type, comes from manual labour. Identify time-consuming processes that provide the most "bang-for-the-buck" in automation and digitization, and you will remove a large part of the cost while maintaining or strengthening your comfort in compliance.
2. Invest in technology
By using technological solutions in compliance work to a greater extent, the risk of customer loss in onboarding is reduced, as well as the costs of manual work. At the same time, conversion rates, customer experience and company results improve. This is shown by the latest studies on costs associated with compliance work and due diligence. Web platforms, APIs and other tools are available here, to carry out audits and checks or monitor customer data.
Avoid missing significant updates or changes to your customer data with the help of automatic monitoring. Not only does it save you worries about incorrect information and reduce manual work, but also it reduces the risk that an audit of the Swedish Financial Supervisory Authority would go wrong and lead to a fine or worse.