OCC identifies key challenges to banks’ Compliance risk management

Complex banking environment increases challenge of Compliance risk management

Regulatory changes and policy initiatives pose substantial challenges to banks’ efforts at Compliance risk management, according to the Office of the Comptroller of the Currency (OCC).

In its Spring 2022 report, the OCC asserted that “compliance risk is heightened as banks navigate the current operational environment, geopolitical risks, regulatory changes, and policy initiatives.”

And in managing their various risk areas that also include credit and operational risk, banks are facing challenges retaining and replacing staff, especially those with specialized experience, due to increasing turnover.

The challenges of staffing and of retaining personnel with subject-matter expertise becomes especially important, according to the OCC, face more and more complex and interrelated challenges “such as inflation, a rising interest rate environment, and other factors related to the pandemic and geopolitical events.”

In Compliance risk specifically, banks must navigate “the complexity of sanctions imposed in response to the Russian invasion of Ukraine. At the same time, the OCC has observed an increase in the competition for compliance subject matter experts, at both the bank management and staff levels.”

The report also emphasized the rise in innovative products and technologies like real-time payment products, digital and mobile services, application programming interfaces, data aggregation options, contactless payment devices, and distributed ledger technologies.

The OCC notes that “this increasing complexity warrants appropriate due diligence, change management, and risk management processes that reflect the bank’s size, complexity, and risk profile, and account for and keep pace with the complexity of the new, modified, or expanded activity. Examiners will continue to assess how banks are managing risks related to changes in operating environments driven by these innovations.”

Experts expect these rises in complexity of operational and compliance risks to be magnified by the staff churn and competition for subject-matter experts. They also warn that the trend toward third-party risk management needs careful attention to due diligence commensurate with the risk posed.


Logo for RegTechONE, a platform for GRC and AML Compliance

RegTechONE platform Puts You in Control of AML/KYC, GRC

With AML Partners’ platform technology for RegTech, updating and upgrading your AML and eGRC software solutions is easier, faster, and much less expensive. Contact us today to explore how platform technology and our end-to-end AML Ecosystem powered by the RegTechONE platform–can transform the efficiency and effectiveness of your unique AML Compliance efforts. RegTechONE software for AML Compliance includes fully integrated modules for CDD KYC software for on-boardingbehavior and transaction monitoring software, and sanctions screening software for comprehensive AML screening. And AML Partners simplifies your end-to-end fully integrated AML Compliance efforts even further with an optional Subpoena Search module for FinCEN 314a and similar subpoena searches. Contact us today to learn about our proof-of-concept option or schedule a demo of RegTechONE, the AML software ecosystem. With extraordinary configurability and built for API extensibility, the RegTechONE AML software platformpowers not only an end-to-end AML software solution but also vendor managementAML client lifecycle managementeKYC Golden RecordsPerpetual KYC, and so much more.

Start achieving more today.

We are so confident in the power of RegTechONE to transform your GRC and AML Compliance solutions that we will prove it to you. Contact us today to experience all the ways that RegTechONE is The Power of Everything.

AML Partners logo/wordmark in white

347 Village Street
Concord, NH USA 03303

Copyright © 2024 AML Partners. All rights reserved.