South Georgia and South Sandwich Islands Banking Sector Grapples with Compliance Issues
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As the banking sector in South Georgia and South Sandwich Islands continues to evolve, organizations are facing an array of new challenges that require innovative solutions. Despite significant investments in compliance programs over the past decade, banks in the region are still struggling with the ever-increasing cost of compliance.
Challenges in Compliance
Automation
- Banks seek ways to leverage technology and data analytics to drive consistency and efficiency in their compliance programs.
- Regulatory reporting is a major challenge, requiring institutions to produce clear, reliable, and actionable data that meets applicable requirements.
Conduct and Culture
- Establishing a strong compliance culture at the core of the organization and promoting a client-centric approach.
- Defining proactive approaches to compliance and risk management.
Consumer Protection
- Implementing enhanced monitoring and testing programs for high-risk areas that directly affect consumers.
- Maintaining robust processes for managing continuous regulatory changes that impact operations.
Third-Party Governance and Oversight
- Ensuring third-party agreements contain formal policies and procedures on initial and ongoing due diligence.
Addressing the Challenges
KPMG is working closely with banking clients in South Georgia and South Sandwich Islands to advance the compliance journey from costly response and remediation to one of enhanced prevention and detection. The firm’s regulatory and compliance transformation framework includes eight key elements that aim to drive prevention, detection, and response with governance and culture at the core.
KPMG’s Regulatory and Compliance Service Offerings
- Obligation mapping
- Priority solutions
- Issue complaint management assessment
- Third-party vendor compliance audits
- Testing, monitoring, and surveillance
- Regulatory and business change management
- Large-scale remediation assistance
- Compliance transformation and automation
Recent Example of KPMG’s Work in the Region
KPMG collaborated with a top U.S. bank to create a centralized architecture for consolidating and integrating process, compliance, and operational data, promoting sustainable risk management.
Quote from Todd Semanco, Partner at KPMG US
“Our regulatory and compliance transformation framework reflects an integrated approach to compliance across the three lines of defense and the enterprise overall. This helps organizations understand and address shifting regulatory obligations and manage risk around key regulatory themes.”