EMEA region's financial crime compliance costs hit R1.6trn in 2023
A new study commissioned by LexisNexis Risk Solutions says the cost of financial crime compliance in Europe, the Middle East and Africa has reached $85 billion in 2023.
Asked about where significant increases have been observed, 25% of companies identified digital payments, while 23% reported heightened use of cryptocurrencies and AI. "The cost of financial crime compliance is clearly rising for financial institutions across EMEA which is being felt by teams across the entire compliance workflow," said Matt Michaud, global head of financial crime compliance at LexisNexis Risk Solutions in a statement.
Labour was the biggest component of financial crime compliance costs in the region, with financial institutions saying this constituent, largely in the form of salaries, accounted for 41% of their total compliance costs in 2023, followed by technology , infrastructure and outsourcing .