Expanding regulatory expectations around the detection, mitigation, tracking and remediation of ‘threat actors’
Technological developments, geopolitical events, and evolving interconnections and interdependencies in financial networks can increase financial crime risks, exposures, and complexities. Regulators will continue to be vigilant in supervising and examining firms’ defenses against financial crimes, such as terrorist financing, money laundering, beneficial ownership, sanctions or tax evasion, trafficking (e.g., drug, human), cybercrime, and potential compliance violations.
As part of these efforts in 2024, regulators will scrutinize:
Regulators report that the costs to consumers and firms from fraud, identity theft, and other “scams” are increasing. Similar to financial crime, technological advancements (e.g., automated systems, crypto and digital assets, digitalization) and developing interconnections and interdependencies will drive regulators to continue to evaluate safeguards against fraud and other scams and consumer protections.
Expect regulators to focus on:
Regulators are similarly giving heightened attention to conduct risk and ethical business practices; regulators view conduct risk as connected to risk culture and to the integrity and reliability of reporting, marketing/advertising, and customer interactions, which are essential to building trust.
As part of their role to safeguard public trust and confidence in the financial services industry, expect regulators to focus on:
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