Celebrating 10 years! 2007-2017

AML compliance going down?

A lot of reports lately on the lack of future growth in comp fompliance211/01/17
Like legal, compliance is spun -- at best -- as loss control mrtor11/01/17
I am vindicated. Start pounding the pavement. XOXO. lifeofleisure11/01/17
The MD (in compliance) at the large investment bank (JPM/GS/ tttpride2511/02/17
fompliance2 (Nov 1, 2017 - 7:14 am)

A lot of reports lately on the lack of future growth in compliance - basically firms not really growing the departments some are even cost cutting

Goldman made one of their controllers the CCO and fired the old CCO it’s oretty ridiculous

Thoughts ?

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mrtor (Nov 1, 2017 - 9:25 am)

Like legal, compliance is spun -- at best -- as loss control or loss reduction. More cynical executives simply view it as an expense. Right or wrong, if your department is not generating new money, you're going to be targeted for cuts at some point. I think the post-recession compliance boom is receding as well. The backlash against banks -- and the desire to hold them accountable for every misstep -- is waning. People have lost interest. Once the attention subsides, you better believe the banks will buy enough influence to repeal the post-recession measures that caused them to spend so much on compliance.

If they cannot abolish those measures, I think you are going to see an accelerated focus on automation and AI to significantly reduce the headcount and expense. That's not some pipe dream either -- it's already happening.

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lifeofleisure (Nov 1, 2017 - 6:33 pm)

I am vindicated. Start pounding the pavement. XOXO.

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tttpride25 (Nov 2, 2017 - 9:05 pm)

The MD (in compliance) at the large investment bank (JPM/GS/MS) I'm at "coincidentally retired" right around the time we were merging with another department. I don't think it's a big surprise that banks have a hold cost down at all cost mentality.

I would also say advances in technology are starting to make compliance more of a low-skilled versus a mid-skilled job.

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