The European Business Forum has an article regarding the impact of "know your customer" regsd on the cost of doing business. Author, Julian Mountain, is somewhat critical of how much the regulations have cost UK firms.

While terrorism and tax evasion are two of the main culprits behind the move against suspicious financial activity, many institutions believe regulation and the heavy fines have increased at a rate disproportionate to the offences. Mid-level institutions are especially hard-pressed to comply, or to pay the price of non-compliance. As a result, money-laundering has become a major operational risk for financial institutions. In Britain, for example, Board Members are held personally responsible for ensuring regulatory compliance...

...Tough new regulatory regimes are costing financial institutions millions of dollars in fines plus incalculable damage to reputations as regulators attempt to get a grip on international money-laundering. The US is the most aggressive, with fines last year totalling hundreds of millions of dollars.

The article also provides some interesting insight into the cumulative pressure resulting from increasingly strict regulatory regimes accross the globe. Altogether very good stuff. One may not agree with the conclusions drawn or the prescriptive regulatory changes described but the article makes for good reading.

The full piece can be found here.

Article via KYCNews.com.

-- MDT

Labels: money laundering