2018年-德勤全球_Financial_Crime_in_the_Middle_East_and_North_Africa_2018_21页_2mb

Summary of Financial Crime in the Middle East and North Africa 2018

Core Content

This report is the fourth annual survey conducted by Thomson Reuters and Deloitte on financial crime in the Middle East and North Africa (MENA) region. It provides insights into the evolving landscape of compliance and financial crime management, highlighting trends, challenges, and the impact of regulatory fatigue and technological advancements.

Main Viewpoints

• Regulatory Fatigue: A notable trend is the reduction in investment in financial crime compliance and technology, which marks a shift from previous years. Compliance programs are being scaled back, and the frequency of risk assessments is declining.

• Compliance Function Transformation: The compliance function is evolving from a backroom activity to a more central and strategic role within organizations. This requires a shift in skill sets, with a growing need for both managerial and technical capabilities.

• Skills and Leadership Crisis: There is a growing lack of confidence in the current compliance programs and the ability of staff to manage them effectively. This is attributed to insufficient senior management support and a skills deficit, which is a long-standing issue in the sector.

• Technology and Innovation: Despite the hype around fintech and regtech, investment in technology has not increased significantly, with cost being the primary concern. The industry is still in the early stages of adopting new technologies, and there is uncertainty about how to integrate them effectively.

• Emerging Regulatory Threats: New regulatory areas such as whistleblower protection and trade-based money laundering are expected to have a significant impact on the region. The report also highlights the volatility of international sanctions and the need for organizations to remain vigilant.

Key Information

Regulatory Fatigue

• For the first time in the study, compliance spend and activities are showing a decline.
• The number of financial crime programs implemented has dropped, with a significant decrease in sanctions and fraud programs.
• Over 50% of respondents have a threat financing program, while only around 50% have programs against bribery and corruption.
• Compliance budgets are expected to grow only slightly in the short term, with a 20% drop from previous years.
• The volume of regulatory updates has increased dramatically, with over 200 daily updates now, compared to 10 in 2008.
• Regulators are stepping up enforcement, with a greater focus on individual accountability rather than corporate responsibility.

Technology and Innovation

• Investment in technology sophistication is decreasing, with only 61% of respondents expecting increased sophistication in the current year, down from 67% in the previous year.
• The main reason for the slowdown in investment is the cost to implement advanced solutions.
• Fintech and regtech are gaining attention, but practical applications are still limited.
• Regulatory sandboxes are emerging in the MENA region, aiming to replicate the successful models seen in Europe and Asia.
• The potential for fintech to disrupt traditional financial services is acknowledged, but many of the major advances are coming from lower-end retail markets.

Skills and Leadership

• There is a widespread lack of confidence in the effectiveness of compliance solutions and staff training.
• Over 47% of respondents cited a lack of management support as a key reason for their lack of confidence.
• Training and staff development remain top priorities for improving compliance awareness and capabilities.
• The balance between technology and human skills is being questioned, with concerns about over-reliance on technology and the need to retain core competencies.

Emerging Regulatory Threats

• Cyber crime and sanctions remain ongoing challenges, but new areas like whistleblower protection and trade-based money laundering are gaining regulatory attention.
• The dynamic nature of the regulatory environment is causing uncertainty, and organizations are advised to regularly reassess their compliance strategies.
• The rise of cryptocurrencies and the potential for digital disruption is a major concern, with governments and regulators trying to catch up with the pace of innovation.

Survey Highlights

• Question 6: Financial crime programs include AML and KYC, with a slight decline in the number of organizations implementing both.
• Question 8 and 9: Investment in compliance is expected to increase only slightly, with a 20% drop in both retrospective and projected investment compared to last year.
• Question 15 and 19: The biggest challenges in managing compliance are securing new resources, communicating tone at the top, and attracting key skills. A lack of senior management support is a common reason for low confidence in compliance programs.
• Question 24: The primary motivation for investing in technology upgrades is better data management and higher quality of output.

Conclusion

The financial crime landscape in the MENA region is undergoing significant changes, marked by regulatory fatigue, a shift towards more central compliance roles, and the growing influence of technology. While there is a need for more sophisticated solutions, the lack of support and resources is a major obstacle. The report emphasizes the importance of maintaining a balance between technology and human expertise and preparing for the future regulatory environment through strategic investment and awareness.