AML and sanctions: Enforcement focus turns to Asia
Overview
Over the past several years, regulators have shifted their anti-money laundering (AML) and sanctions focus from Europe to Asia. Our recent study shows that 31% of financial services organizations in Asia reported being under a regulator-enforced remediation program – a 288% increase since 2016.
Several factors have contributed to this shift in regulatory focus. After US regulators levied billions of dollars in regulatory penalties against European banks for sanctions and AML-related violations, many European banks significantly enhanced their compliance programs and defenses. In contrast, Asian banks had previously avoided this regulatory scrutiny and as a result they were not compelled to make the same enhancements.
This Financial crimes observer provides key steps that Asian banks should take to comply with growing regulatory scrutiny over their AML and sanctions programs.
