"If you think compliance is expensive, try non-compliance,” former U.S. Deputy Attorney General Paul McNulty once observed.
Being in Compliance with the law, with organizations fighting money laundering like the Financial Action Task Force (“FATF”), and with sanctions issued by various countries and the United Nations is not an option but a responsibility
Over the years, many institutions that have failed to recognize the importance of being compliant have paid the price for it. Some are struggling to live with a damaged reputation, others paid hefty fines while many have been forced by their regulators to cease operations.
In 2020, the total fines for non-compliance worldwide was over $10 billion, a rise of 27% from 2019. 2020 was also the year of more fines imposed on directors, compliance officers, money laundering reporting officers (“MLROs”) and other employees for their failure to prevent compliance breaches.
Unfortunately, the consequences of non-compliance are not limited to fines. Arms, Drugs and Human trafficking, Illegal wildlife trade, Terrorist acts are all examples of crimes that thrive as a result of non-compliance by organisations and poor enforcement by agencies.
Recent studies show that we are losing the fight and it’s about time for us, professionals, to act consciously and responsibly.
Remember, Today, the crimes are impacting others. Tomorrow it could be us...
