Regulatory compliance in the Asia Pacific: 2024 risk report

Regulatory compliance in the Asia-Pacific region is more intricate than ever. Thomson Reuters’ latest report, ‘Top 10 compliance considerations for the Asia-Pacific region in 2024’, delves into the complex regulatory terrain.

The report, written by Senior Regulatory Intelligence Expert, Niall Coburn explores the top 10 risks facing compliance professionals, financial services firms and regulators. Niall shares practical tips for organisations to mitigate these risks.

Compliance professionals who want to stay informed, address issues and improve organisational resilience should pay attention to the insights. Here is a snapshot of key topics covered in the report:

AI and e-commerce crime causes ‘regulatory fragmentation’

Niall underscores the challenges of regulatory fragmentation in the Asia-Pacific region. The rise of e-commerce scams, AI crime, and data breaches are impacting financial institutions and government agencies. This emphasises the need for cross-border cooperation to combat emerging financial crimes effectively.

As AI continues to integrate into financial operations, it brings both benefits and unique regulatory challenges that require thoughtful consideration and compliance.

“The rise of more sophisticated artificial intelligence will enhance the speed, precision and effectiveness of operations and defences. On the flip side, AI is being used successfully by criminals to infiltrate customers’ data and accounts at firms across all sectors, placing more pressure on compliance teams to find solutions to these emerging threats.”

– Niall Coburn, Senior Regulatory Intelligence Expert, Asia Pacific

Fostering moral leadership and the ‘ethical barometer’

The report emphasises the increasing importance of fostering moral leadership to establish and preserve trust with clients, investors, and partners. A so-called ‘ethical barometer’ will see a rise in decisive action, such as the removal of a group general counsel for behaviour inconsistent with ethical standards.

Reinforcing ethical expectations among employees, maintaining fair complaint procedures and prioritising transparency are a must for organisations.

The broader implication is that ethical leadership is now considered a strategic necessity for an organisation’s success. Regulators and boards are focusing on ensuring adherence to ethical codes to avoid reputational damage and potential litigation.

How can organisations maintain regulatory compliance?

To address the challenges to regulatory compliance sparked by the evolving threats in the Asia-Pacific region, organisations must prioritise crisis preparedness, fraud prevention, and cybersecurity. Implementing the following actions will help to mitigate these risks:

Effective crisis management: Firms need robust crisis management for cyber, fraud, and other threats. Considerations include multi-disciplinary crisis teams, communication strategies and insurance implications.

Anti-scam measures: Combatting increasing financial scams requires education, clear policies, information sharing and swift responses to complaints.

Cybersecurity priority: Growing cyber threats demand staff and customer training, collaboration, and robust incident reporting standards.

Are you across APAC’s regulatory compliance landscape? Unlock the full complementary report, ‘Top 10 compliance considerations for the Asia-Pacific region in 2024’, via the form here on Business Insight.

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