Financial Crime World

Title: Forrester Report Reveals Surprising Insights on Global Financial Crime Compliance Costs

Subtitle: LexisNexis Risk Solutions Unveils the 2023 True Cost of Financial Crime Compliance Study

In today’s complex financial climate, combating financial crimes more effectively and efficiently than ever before is crucial. In a recent groundbreaking report, Forrester Research reveals insights on financial crime compliance costs for businesses worldwide. Sponsored by LexisNexis Risk Solutions, this extensive study offers valuable insights into how organizations can enhance their compliance frameworks while keeping costs under control.

Key Findings of the Forrester Research Report

  1. Decreasing Financial Crime Compliance Costs: Contrary to expectations, some companies have managed to decrease their financial crime compliance expenditures over the past few years. This reduction was achieved through improving internal processes and investing in advanced technologies.

  2. Geographical Variations in Compliance Costs: Europe had the highest compliance costs, with Asia Pacific and North America following closely behind. This disparity might be partly due to the intricacy and multifaceted nature of EU regulatory frameworks.

  3. Investigating Alerts: Financial institutions spend approximately one-third of their financial crime compliance budgets on investigating alerts triggered by their fraud detection systems. Opportunities for cost savings are present with the growing number of false positives in these systems.

  4. Understanding Financial Crime Root Causes: Understanding the root causes of financial crimes is essential for a better-targeted compliance strategy. LexisNexis Risk Solutions, which sponsored the study, believes its proprietary technology can aid in this effort.

Quote from Stephanie Schwed, Senior Vice President of Market Strategy and Product Management for LexisNexis Risk Solutions

“Financial crime is an ever-evolving challenge, and our goal is to provide the insights and tools necessary for companies to not only mitigate risks but thrive in a complex regulatory landscape,” said Stephanie Schwed, Senior Vice President of Market Strategy and Product Management for LexisNexis Risk Solutions.

Conclusion

The Forrester Research study underscores the potential opportunities for cost savings in financial crime compliance. By carefully allocating budgets to technologies that bring the most value, organizations can optimally manage their compliance costs and improve overall operational efficiency.

About LexisNexis Risk Solutions

LexisNexis Risk Solutions, a division of RELX, provides data and technology solutions for various industries and governments worldwide. Their mission is to help clients manage risk through deep industry expertise, data, and advanced technology to offer actionable insights that drive informed decisions. Their solutions cover regulatory compliance, fraud detection, identity verification, and location-based intelligence. For more information, visit www.lexisnexis.com/risk.

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