Are International Banks "Overcomplying?"

Posted on July 11, 2022

When I establish international structures for clients I am almost always asked, "how long is this going to take?" My answer is always the same, "I can draft rather quickly. The bottle neck is going to be opening a bank account." This is so because international banks are increasingly burdened with compliance requirements which seemingly increase on a daily basis. How much of this is actually required though?

Most banks have necessarily put in place comprehensive and well-executed compliance programs that help to protect the bank's reputation and assets. Specific risk areas have been identified with systems set up to monitor activities such as money laundering and terrorist financing.

Conducting due diligence on customers and managing their sensitive data is of course vital. However, banks are doing more than ever before to "comply with regulations." But how much is too much and is it all really required? Well, the UN for one seems to think some international banks have already gone way beyond what is actually required and that this trend is damaging global trade.

What do you think? 

https://blog.macfarlanes.com/post/102hsd5/united-nations-tells-global-banks-stop-over-complying-with-financial-sanctions