Keeping up with regulatory changes impacting the finance industry can be a lot, to say the least. Post-global pandemic, as the world has finally normalized again, the road ahead remains an open book, and the only constant in the picture will be change itself.
However, there are some key areas for financial professionals to zero in on as they assess current and upcoming trends.
Financial Concerns to Be Aware Of
Anti-Money Laundering (AML)
Regulators everywhere are increasingly focused on AML reform and implementing a more comprehensive, holistic, and risk-based approach to fight financial crime. In the United States, this priority tops business regulatory agendas in the wake of the publication of the FinCEN files. The Anti-Money Laundering Act is set to radically reshape the Bank Secrecy Act (BSA) and the anti-laundering and counter-terrorist financing landscape. This is part of a larger picture of AMF reform worldwide.
Among related recommended action steps for your business are:
- Establish risk-based programs to effectively address AML issues.
- Keep senior management and your board current on changes as they occur.
- Implement the latest technology to address AML-related threats and challenges.
- Enhance policies and procedures related to whistleblowers and political exposed persons (PEPs).
Data privacy continues to grow in importance, with a majority of states having passed related legislation. On a federal level, the Information Transparency and Personal Data Control Act was introduced in March 2021. This year has seen the first of these acts become operative, beginning in January in Virginia and California and followed in July in Colorado. Bear these and other state and federal rulings in mind as your company puts compliance controls in place.
- Establish dedicated teams to ensure you have good data management systems in place.
- Implement assessments that help you identify data risks early on so they can be effectively mitigated.
Numerous regulatory actions in recent years have brightened the widening spotlight on the global green economy. Regulators are laser-focused on climate risk-related issues and supervisory guidance, and stakeholder expectations continue to rise. When the Biden administration re-signed up to the 2016 Paris Agreement, it represented a major step forward for the U.S. in joining this climate change initiative.
Related best practices include:
- Making sustainable finance part of your governance structure. For instance, create a chief sustainability officer position if you don’t already have one in place, and incorporate this area into board-level decision-making.
- Incorporate sustainable impacts into your strategy when designing and launching new consumer products.
- Accelerate disclosure and reporting adoption of the FSB’s Task Force on Climate-Related Financial Disclosures (TCFD) principles, as they may become mandatory in the not-too-distant future.
Stay Up to Date on Changing Regulations
The Venteon Finance team can help you stay abreast of developments and changes impacting the financial industry, and stay right-staffed when it comes to compliance and other subject matter experts. Contact us today to find the talent you need to continue growing and sustaining your business and our world.