Financial Crime World

Compliance Concerns in Banking Industry Haunt South Georgia and South Sandwich Islands

The COVID-19 pandemic has brought unprecedented challenges to the financial services industry worldwide. In the remote islands of South Georgia and South Sandwich Islands, compliance issues are taking center stage as banks struggle to keep up with regulatory demands.

Challenges Faced by Banks in South Georgia and South Sandwich Islands

Banks in this region face numerous challenges including:

  • Redeployment of Resources: Meeting immediate operational needs while granting waivers or exceptions due to urgent operational demands
  • Reprioritization of Compliance Activities: Emerging disruption risks coupled with resource constraints force banks to reprioritize compliance activities
  • Rapid Roll-out of Complex Government Stimulus Programs: Ongoing iterative changes and expedited delivery to market create compliance challenges
  • Increased Compliance Risks: Misconduct risk such as insider trading, PII use, fraud, and phishing pose significant threats
  • Providing Additional Communications and Training: Maintaining compliance amid new regulatory and supervisory expectations requires increased communications, training, monitoring, and data analysis

Regulatory Expectations

Regulators are scrutinizing the effectiveness of compliance programs, expecting them to be:

  • Technology-enabled
  • Linked to enterprise risk management
  • Revised based on relevant data and information

Investing in Compliance Function

Firms in South Georgia and South Sandwich Islands must invest adequate resources into the compliance function to address evolving skillsets, including staffing, training, structure, and stature.

Conclusion

The banking industry in South Georgia and South Sandwich Islands is navigating significant challenges. Regulators will be watching closely, with a focus on the effectiveness of compliance programs. To meet these demands, firms must invest in technology-enabled solutions, linked to enterprise risk management, and revised based on relevant data and information.