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How the compliance landscape will change in 2022

November 23, 2021By

As we all know, the anti-money laundering (AML) and compliance landscape is ever-changing and ever-evolving to continuously address the needs of the geopolitical landscape. Helping detect and report suspicious activity—including flagging politically exposed persons, reporting potential organized crime, and terrorist financing—have all been evolutions that the Financial Services industry has had to adapt to in the last 50 years, and 2022 is bringing with it a number of implied changes to the North American regulatory landscape.

With recent events, it seems likely that a storm of complexity is about to sweep across Financial Services firms in North America. Why? Domestic threats are no longer primarily driven by overseas groups. With threats coming from closer to home, it’s no longer primarily large multinational institutions that need to ensure a robust compliance program, but also small local credit unions and community banks.

People, process, technology: three ways to stay on top of compliance regulations

So, how is your firm coping with this new level of compliance complexity? Do your AML procedures properly capture and flag suspicious activity? While having the right technology is certainly essential (more on that later), it’s also important to consider if you have the right people and processes in place. Let’s break it down a little more:

People

  • Building your compliance and AML team: Managing AML and compliance regulations, regardless of the size of your institution, is not an easy task. If you’re a smaller organization, consider bringing on a dedicated AML compliance officer who has the experience and knowledge to keep you in compliance with the ever-changing laws and regulations. They can help manage internal audits, process improvements, compliance analysis, employee training programs, etc.
  • Training programs and support: Providing ongoing training and support for your teams is essential in staying compliant. This shouldn’t only be for “high-risk” teams—although those teams certainly require a lot of support—but even your frontline employees, tellers, and support staff. Do they know the right questions to ask (with confidence), guidelines for what’s normal/risky, and the processes to report suspicious activity? Do your teams understand the consequences of ignoring warning signs? Building out a training program that’s accessible, digestible, and current (we all know how quickly regulations change), doesn’t have to be difficult. If you’re already up and running on Salesforce, myTrailhead is a great place to build out these training materials.

Process

  • Creating a compliance culture: While training, documentation, and reporting is important, they should not be treated as on-offs or afterthoughts. The best compliance processes are almost invisible. They’re seamlessly woven into the fabric of your operations, from top level management down to frontline workers. This type of compliance culture requires a commitment from leadership, allowing the allocation of time (and budget) for compliance training, support, incentivization, and innovation.
  • Communicating compliance change: As we know, the AML and compliance landscape is constantly evolving. Do you have the processes in place to effectively communicate these changes across your organization? Aside from posting on your internal communications hub and required training, Salesforce flow, action plans, validations, and information pop-ups should be leveraged to ensure compliance changes are adhered to. Employees are faced with mountains of change daily so communicating the change to them in several ways and forms will encourage change adoption.
  • Rethinking your reporting process: Ensure you have a powerful reporting system that can help deliver accurate data in real-time to the relevant authorities. Changes to regulatory information should be tracked, even with solid communication and training, monitoring and reporting is the keystone to a successful compliance regime. Salesforce Shield is a solution that can monitor events, field-level changes and provide encryption. The monitoring can trigger alerts to relevant authorities when information is changed and produce dashboards for enterprise oversight.

Technology

  • Establish a 360-degree view of your customers: Build a consolidated customer book of record with your CRM to eliminate any fragmentation you might have around multiple onboarding processes, lead management, and middle-or back-office operations. This eliminates potential “cracks” between systems, and enables a holistic perspective of each customer.
  • Build secure and seamless integrations: Ensure your CRM and AML systems/processes are speaking to each other in real-time. If you’re using Salesforce as your core CRM, you can use Salesforce’s API to automate the OFAC Sanctions list scans, and integrate Mantis or Hotscan into front-office processes for transaction flagging—making the entire process seamless, coordinated, and secure.
  • Adopt an innovation mindset: Finally, the Financial Services industry, and it’s regulations, is a constantly evolving space. Firms must adopt a similar mindset (and technology stack) to help them evolve alongside these changes. Salesforce is constantly adapting to meet these changing needs; from new products like Salesforce Shield to providing comprehensive out-of-the-box regulatory solutions, or third-party AppExchange packages to address specific use-cases. Just as an iPhone is no longer really a phone, your CRM must evolve to be more than just a CRM.

Get ahead of compliance complexity

Looking for help to get started? Our team can help you to build a bulletproof compliance solution that can adapt to the changes we are all experiencing this year.

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