Financial Institutions in Germany Must Stay Ahead of Compliance Curve, Experts Warn
Berlin - In an increasingly complex regulatory landscape, German financial institutions must continually improve their compliance activities to stay ahead of the curve, experts have warned.
The Importance of Flexibility and Harmonisation
The need for flexibility and better harmonisation between compliance and business strategy has never been more pressing. Financial institutions that fail to adapt quickly to changing regulations and expectations risk falling behind their competitors.
Key Challenges in Compliance
- Complex regulatory landscape
- Need for flexibility and harmonisation
- Risk of falling behind competitors
Investing in Integration and Automation
According to KPMG, a leading consulting firm in Germany, financial institutions should invest in integrating and automating compliance activities today to be well-equipped for the future.
“Compliance management frameworks must be designed to effectively monitor and manage risks of non-compliance with applicable requirements,” said a spokesperson for KPMG. “We harmonise the key elements of an effective compliance framework, including compliance culture, objectives, risks, communication, and monitoring and improvement.”
Benefits of Integration and Automation
- Improved risk management
- Enhanced compliance culture
- Better alignment with business strategy
Combating Financial Crime
KPMG’s experts also emphasized the importance of combating financial crime, which is becoming increasingly complex due to changing laws on money laundering and terrorist financing.
Key Challenges in Combating Financial Crime
- Changing laws and regulations
- Increasing complexity of financial crime
- Need for effective risk management
RegTech Solutions
To combat these challenges, KPMG supports clients in developing a uniform and holistic picture of risks across specialist/organisational areas, regions, and processes.
RegTech Services Offered by KPMG
- Tax compliance
- Implementing requirements from regulations such as FATCA/CRS, DAC 7, and the UK CCO
- Digital solutions for day-to-day compliance
- Integration of artificial intelligence (AI) into compliance processes
Contact Us
For financial institutions looking to stay ahead of the compliance curve, KPMG’s customized advice and innovative solutions can provide a competitive edge. Contact us today to learn more.