1、True Cost of Compliance 2023|ReportIs the UK financial services sector doing enough of the right things to effectively fight financial crime?Table of Contents 01 Is the UK effective in its efforts to detect,disrupt and deter financial crime?Introduction Expert Perspectives 02 Is the UK financial ser

2、vices sector doing enough to fight financial crime?Financial crime compliance spend for 2022 equivalent to three quarters of UK defence spend Compliance spend has risen since 2020,driven in part by rising volumes of activity Compliance costs felt most acutely by smaller firms that lack economies of

3、scale Regulation remains the biggest perceived external compliance cost driver more so than financial crime itself Geo-political and economic factors are not significantly adding to compliance costs Compliance costs are expected to continue rising by 2025 04 Are the efforts of financial institutions

4、 having the necessary impact on financial crime?Industry efforts felt to be somewhat effective,but with room for improvement 05 What improvements in financial crime processes have firms already implemented and what improvements do they expect to implement in the next three years?Staff training and d

5、ata improvement or augmentation Greater automation of CDD processes Increased integration of processes,activities and checks through FRAML and risk workflow orchestration Increased use of AI and advanced analytics Broader sharing of fraud and financial intelligence 06 Conclusion 03 Are UK financial

6、institutions focusing on the right activities?Customer due diligence activities are still consuming the majority of costs Biggest compliance volume increases seen in internal investigations and enhanced due diligence activities Biggest compliance cost increases seen in KYC/IDV and internal investiga