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Spend on financial crime counter measures remains strong, despite difficult economic climate for FS

Nearly half of respondents say investment will increase by up to 20% in key areas

FOR IMMEDIATE RELEASE

 
PRLog (Press Release) - Dec. 10, 2013 - According to a survey from BAE Systems Detica, spend on financial crime counter measures remains a priority for businesses globally. The “Financial Crime Survey 2013”1 reveals that investment by many global businesses in operational risk, anti-fraud and compliance solutions is increasing, as the threat of financial crime becomes more acute.

Financial crime and compliance budgets are expected to be up across the board, with nearly half of all respondents predicting up to 20% more investment in all of the following areas: compliance (50%), fraud management (49%), AML (45%), tax and FATCA compliance (45%), and trade surveillance and compliance budgets (43%) over the next 12 months. Most of the remaining respondents expect budgets to remain the same as they were in 2013. Those who expect a decrease anticipate that to be between just 4% and 9%.

The 2013 survey has also revealed the types of financial crime initiatives that are the biggest priorities for senior management teams. The focus this year has remained firmly on cyber crime (with businesses giving this category an average rating of 7.74 out of 10 as a priority area), insider and payment fraud (7.44 and 7.37) and online fraud (7.11). These concerns among businesses reflect the high number of breaches of both personally identifiable information and commercially identifiable information at financial institutions and data suppliers over the past year.

Looking further ahead, the survey reveals that Basel III (the global, voluntary regulatory standard on bank capital adequacy (http://en.wikipedia.org/wiki/Capital_adequacy), stress testing (http://en.wikipedia.org/wiki/Bank_stress_tests) and market liquidity (http://en.wikipedia.org/wiki/Market_liquidity) risk (http://en.wikipedia.org/wiki/Liquidity_risk)) is viewed as the regulation that will have the biggest effect on business operations over the next three years, with over half of respondents (53%) predicting that the regulation will have a major impact on their operations. This is the single largest ‘major impact’ response recorded since the survey began in 2007, and reflects the fact that Basel III is challenging financial institutions to change business models in order to enhance supervisory oversight to improve the quality of capital and contain potential economic mishap.

Another area identified as a concern is that of information security and data-breach legislation, which was singled out by over a third of respondents (38%) as having a major impact. EU data-breach regulations, which came into effect in August 2013, are widely believed to be a precursor to a more expansive protection framework with a wider application within financial services.

George Robbins, General Manager, Financial Crime at BAE Systems Detica said:

“Despite a difficult economic climate, it is encouraging to see the financial services industry recognising the importance of continued investment in financial crime defences. 2014 will see cyber crime and insider, payment and online fraud continuing to pose a threat to businesses bottom lines, and companies must ensure they are sufficiently prepared to combat these threats. On a regulatory level, Basel III has been overwhelmingly identified as the regulation that will have the greatest impact on businesses, and the framework looks set to present organisations with challenges that will continue long into the foreseeable future.”

-Ends-

Media Contacts:

Natasha Davies, Global PR Director, BAE Systems Detica:
Tel: +44 (0)20 7812 4274
Mobile: +44 (0)7787 297 831
Email: natasha.davies@baesystemsdetica.com

Eric Hazard at Articulate Communications, on behalf of BAE Systems Detica,
Tel: (212) 255-0080 ext. 23

Email: detica@articulatecomms.com

Note to editors

1.    Financial Crime Survey 2013 – a global survey of 123 senior executives from financial institutions worldwide created by BAE Systems Detica and conducted amongst Operational Risk & Regulation Magazine’s global readership.

About BAE Systems Detica

BAE Systems Detica delivers information intelligence solutions to government and commercial customers and develops solutions to strengthen national security and resilience.

Detica is part of BAE Systems, a global defence, aerospace and security company with approximately 90,000 employees worldwide.

BAE Systems delivers a wide range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services. For more information, please visit www.baesystems.com

Contact
Eric Hazard, on behalf of BAE Systems Detica
(212) 255-0080 ext. 23
detica@articulatecomms.com

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Source:BAE Systems Detica
Industry:Finance, Technology
Tags:security, Finance
Shortcut:prlog.org/12254258
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