The top 5 trends for compliance departments in 2016 are:
- Creating a culture of compliance
- Increased investment in compliance operations
- Keeping pace with a changing regulatory landscape
- Encouraging whistleblower activity
- Monitoring third-party risk
Compliance trends by the numbers
A culture of compliance
58% of businesses surveyed viewed promoting a corporate culture of integrity to be the ultimate goal of their compliance and ethics programs.
Increased investment in compliance operations
- Last year, 71% of firms expected the cost of senior compliance professionals to increase to do the demand for skilled/knowledgeable staff.
- This trend continues in 2016 with a high proportion of boards predicting a “significant increase” in compliance spending:
- 75% of compliance leaders expect management will require more/much more attention.
- More than 1/3 of organizations surveyed spend at least an entire day per week tracking and analyzing regulatory change.
- 93% of practitioners voting at the 2015 Thomson Reuters New York Customer Summit expected the personal liability of compliance professionals to increase in 2016.
- 64% of respondents to the Thomson Reuters personal liability survey expected that individual accountability would be replicated around the world.
- Conduct-related infractions are projected to exceed $20B globally.
Exposure to risk
- 6,000 names of companies/individuals on OFAC’s Specially Designated Nationals and Blocked Persons list.
- Fines of up to $20M and imprisonment up to 30 years for OFAC violations.
- US Securities and Exchange Commission collected 114.8 million in 2015 Foreign Corrupt Practices Act enforcement actions.
Encouraging whistleblower activity
- US SEC received 4,000 whistleblower tips and paid $37M in whistleblower rewards in 2015.