The report, The Cost of Compliance and How to Reduce It, found that following new EU Anti-Money Laundering (AML4/5) and Counter-Terrorist Financing (CTF) rules extending the scope of KYC requirements, the annual cost of punitive non-compliance fines has risen to €3.5 million.
When things go wrong – which they do, as card ID theft in the UK rose by 59% to £47.3 million last year – these fines could soar into the tens or even hundreds of millions. But it’s not all about the financial and business costs.
The risk of reputational loss, losing license to operate, and even personal liability of senior management are also increasingly significant for banks who get KYC wrong.
Read more: Help Net Security