Organised crime is biggest compliance-related threat facing firms, study claims

Organised crime is the biggest compliance-related fear facing firms, according to a new report from NorthRow.

The report also states that almost half of organisations fail to have a fully integrated client monitoring solution as part of their risk management process.

Effective client monitoring is a key priority for compliance processes and the pandemic has led many firms to accelerate their digital transformation to continue supporting these workflows remotely. NorthRow’s survey claims over 80% of organisations are actively monitoring their client portfolio.

However, only 29% stated their monitoring was fully integrated into their CRM and 31% said it is part of their risk dashboard. Finally, 40% said they use a standalone or point solution for client monitoring that is not integrated into overall risk processes.

When questioned on what is their biggest compliance threat, 35% said organised crime, while 26% said regulatory divergence.

NorthRow CEO Adam Holden said, “Over the customer lifecycle, there will be continuous changes in your customers’ risk profile, for example, company structures, beneficial ownerships, directorships and more importantly, their financial stability. The pandemic has added to the frequency of these changes at unparalleled speed, including an increase in insolvencies and money laundering activities.

“While it is encouraging that the majority of organisations are actively monitoring their clients, the findings that less than a third of firms have monitoring fully integrated into their CRM is a surprise. The right digital solution, tailored to the individual requirements of a business, enables ongoing monitoring and reduces the risks presented by cumbersome manual systems.”

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