Financial Crime World

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Financial Regulations: Know the New Rules to Avoid Fines

In an era of increasing regulatory scrutiny, financial institutions must stay ahead of the curve to avoid costly penalties. The year 2022 has brought high levels of risk and regulatory supervision, with regulatory expectations rapidly escalating.

Regulatory Expectations in Focus

According to a recent report by KPMG Regulatory Insights, all financial services companies should expect intense levels of supervision and enforcement activity across ten key challenge areas. These include:

  • Evolving focal areas such as corruption, cybercrime, terrorist financing, fraud, transnational criminal organization activity, drug trafficking, human trafficking, and proliferation financing
  • Emerging issues such as ransomware demands via virtual currency, forthcoming regulations covering beneficial ownership information reporting, suspicious activity reporting for environmental crimes, ESG-factors like human rights and workplace safety across third-party vendors, and changes to policies to facilitate investigations and enforcement activity

Strengthening Controls and Compliance Programs

The report emphasizes the importance of strengthening controls around these regulatory focal areas. Financial institutions must incorporate priorities into their risk-based anti-money laundering (AML) compliance programs once final regulations have been issued and become effective.

Regulatory Expectations are Rapidly Increasing

“The regulatory ‘perimeters’ continue to expand, and regulatory expectations are rapidly increasing,” said Amy S. Matsuo, Principal, U.S. Regulatory Insights & Compliance Transformation Lead, KPMG LLP. “All financial services companies must be prepared for high levels of supervision and enforcement activity across these ten key challenge areas.”

Investing in Compliance and Consumer Protections

To stay ahead of the curve, financial institutions must invest in:

  • Compliance
  • Consumer protections
  • Fair competition
  • Individual and corporate accountability for compliance failures and misconduct

Stay Informed About Financial Regulations

To receive ongoing updates on evolving supervisory, regulatory, and enforcement trends from KPMG Regulatory Insights, please submit your information below:

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Contact Information

If you have any questions or would like to learn more about the report, please contact:

  • Amy S. Matsuo, Principal, U.S. Regulatory Insights & Compliance Transformation Lead, KPMG LLP
  • Edwige Sacco, Principal, KPMG US
  • Todd Semanco, Partner, Advisory, FS Regulatory & Compliance Risk, KPMG US
  • Matthew P. Miller, Principal, Advisory, Cyber Security Services, KPMG US

The report is available online at [link to KPMG Regulatory Insights].