True Cost of Compliance – 2023 Report
This report updates our 2020 research on the detection and prevention of financial crime, and it’s cost to the UK financial services sector. We surveyed 300 senior compliance executives about their costs and compliance activities, and used these results to estimate the costs across the UK Financial Services sector. The report, by LexisNexis Risk Solutions, includes interviews with senior compliance officials, and presents the factors driving increases in compliance costs, and how people and technology are employed across the full range of compliance obligations in the fight against fraud and money laundering.
Our survey explored in depth the trends in compliance costs across Financial Institutions in compliance departments and more front line roles, the factors driving compliance costs, and breakdown by type and compliance activity. We then carried out econometric analysis to calculate the total financial crime compliance cost for the UK financial services sector, as well as providing further analysis. This shows that the new sanctions relating to the Ukraine conflict affect a minority of institutions and is not a material factor to explain the persistent increase in compliance costs, which is mostly driven by keeping up with regulatory expectations. There are signs that financial institutions are upgrading their compliance approach, using more technology to improve efficiency and effectiveness.
The experts behind the research
John and Ben, members of the Thought Leadership and Economic Consulting teams, respectively, bring years of experience working with clients around the globe and across sectors to build models, forecast markets, run extensive surveys, and evaluate interventions using state-of-the art techniques.
John Reiners
Managing Editor, UK & EMEA, Thought Leadership
Ben Skelton
Lead Econometrician, Economic Consulting
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