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Reuters: Banks Under Remediation Emerge With Stronger Financial Crime Compliance Programmes

Banks that have undergone remediation programmes following breaches of anti-money laundering or counter terrorist financing rules often emerge with stronger financial crime compliance programmes than they would have otherwise invested in.

Recent enforcement actions taken by Japan’s Financial Services Authority on a few domestic banks, and the aftermath of Australia’s Hayne Royal Commission, have revealed inadequacies in the financial crime compliance programmes of some Japanese and Australian banks.

In response, Joseph Quiazon, Managing Director and APAC Head of Financial Crime Compliance at Exiger speaks to Regulatory Intelligence at Reuters, adding: “It is not to say that banks have not invested in their financial crime compliance programmes. They have”. But: “such examples appear to demonstrate that banks in a vast majority of the jurisdictions in Asia continue to underinvest in their financial crime compliance programmes until fines compel them to embark on major remediation programmes”.

Concerning the effectiveness of remediation programmes in driving positive compliance change at banks, Joseph explained: “It accelerates what they are going to do in the compliance space. At the end of a five-year remediation programme, these banks are more advanced in their financial crime compliance programmes than before”.

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