Criminals are always scheming and attempting to get their illicit transactions by compliance officers. Regulators are increasing fines for financial institutions failing to operate sound compliance programs. With increased fines and regulatory pressures, financial institutions are taking additional precautionary steps to identify all suspicious activity. This has led to a significant growth in cases for compliance teams to review.
In order to cope with the growth in suspicious alerts and internal employee referrals, compliance managers are staffing up. They’re increasing headcount in response to the rapid increase in case volume and to ensure they do not process illicit funds.
Until fairly recently, the success of a compliance program has typically been measured by the number of alerts, referrals and investigations checked off and completed. But this doesn’t answer the question that all top management is bound to have. Is my compliance department’s spend worth the mega bucks allocated to it on the master budget? I.e. how do I better measure the return on investment when it comes to my compliance spend?
I recently wrote an article for ACAMS Today which outlines four key metrics that compliance heads can use to better measure and report their department’s ROI.
You can read the full article on the ACAMS Today website here. But, to give you a sneak preview, the headlines for the four metrics are:
If you’d like to learn more, get in touch or drop me a line at david@settle.eu.
Two weeks ago, I also shared an article I’d written about the future of anti-money laundering compliance. You can read more about this here.
