Why good compliance equals good business — Transcript

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1. 0:00for many firms compliance has evolved
2. 0:02from an isolated business prevention
3. 0:04unit to a commercially focused business
4. 0:07partner good governance can make
5. 0:09businesses more competitive and even
6. 0:12prevent crime
7. 0:13Vanessa cutter furred went to find out
8. 0:15why good compliance equals good business
9. 0:18the 2008 financial crisis was the worst
10. 0:22since the Great Depression what began as
11. 0:24a crisis in the US subprime mortgage
12. 0:26market was compounded by the collapse of
13. 0:28Lehman Brothers later internal documents
14. 0:32would reveal a culture with no
15. 0:33accountability for failure the company
16. 0:36had taken excessive risks and it wasn't
17. 0:38alone Nick Eliot reported on the crisis
18. 0:42as it unfolded the financial crisis was
19. 0:45a catalyst for changing the way that
20. 0:46financial institutions look at risk
21. 0:48whereas in the past they've mostly
22. 0:50focused on credit and market risk it
23. 0:53woke them up to the facts that
24. 0:55regulatory risk was was a massive risk
25. 0:58that had to be dealt with another major
26. 1:01area of focus and a big change in the
27. 1:04approach to regulation since the crisis
28. 1:05has been the focus on what they're
29. 1:07calling culture compliance is about
30. 1:10obeying the rules and staying within the
31. 1:12rules culture is about the approach you
32. 1:15take to doing business and the financial
33. 1:19industry has really moved closer in line
34. 1:21with with general thinking that it's
35. 1:23fine to come up with sets of rules that
36. 1:26people have to obey but it's actually a
37. 1:28much more powerful discipline on
38. 1:30business if you can have your employees
39. 1:33understand the values and standards that
40. 1:36you have at that company and keep them
41. 1:38within those standards maintaining
42. 1:40standards makes business sense
43. 1:41preventing the fines that many banks
44. 1:44faced following the crisis but it also
45. 1:46has wider societal benefits modern
46. 1:49compliance isn't about ticking boxes or
47. 1:52inhibiting business
48. 1:53it's an enabler protecting society from
49. 1:56organized crime owned by the frontline
50. 1:59Geraldine Lawler knows that better than
51. 2:01most
52. 2:02she's global head of financial crime at
53. 2:04Barclays we've been working very
54. 2:06actively with government and law
55. 2:07enforcement at the moment in trying to
56. 2:09understand
57. 2:10what are the priority threats for UK plc
58. 2:13and as part of that we've come up with
59. 2:15what we see is the five key threats for
60. 2:18the UK so that's terrorism human
61. 2:20trafficking how we look identify
62. 2:22corruption and drive corruption out of
63. 2:24particularly the area of real estate and
64. 2:26the trade base money laundering and also
65. 2:29how we identify and mitigate the threat
66. 2:32of money-laundering through markets we
67. 2:34are starting to identify and work
68. 2:36through expert groups in coming up with
69. 2:39topologies as to how we would identify
70. 2:41that risk and then using data analytics
71. 2:44we're able to surface that risk within
72. 2:46our book and then provide intelligence
73. 2:48to law enforcement criminals who once
74. 2:50remained hidden can now be identified as
75. 2:53standing out from the crowd through the
76. 2:55kinds of transactions they make it's
77. 2:57fascinating you know you will talk to a
78. 2:59lot of people in the modern compliance
79. 3:01industry and they're very passionate
80. 3:02about what they do it's rare to say that
81. 3:05there are I guess historically jobs say
82. 3:07in a large financial institution where
83. 3:09you could look yourself in the mirror
84. 3:11and say you know I am making a real
85. 3:13difference I am making positive
86. 3:15decisions and helping society as well as
87. 3:19my firm as well as protecting customers
88. 3:21and I think this win-win approach is
89. 3:24something that's gone beyond just a
90. 3:25narrow compliance function in banks and
91. 3:28other firms where they have actually
92. 3:30realized you know what the compliance
93. 3:32function are promoting actually makes
94. 3:35good commercial sense for sustainable
95. 3:37businesses as a whole in the long term
96. 3:39and you know what that's a really
97. 3:41brilliant change we've got a long way to
98. 3:43go yet in making sure that mindset is
99. 3:46consistent all around the world that
100. 3:48journey towards raising global standards
101. 3:51means new laws keep coming into place
102. 3:53and regulators keep making new demands
103. 3:56change is the only constant which means
104. 3:58professional compliance training is key
105. 4:01there's a absolute labyrinth out there
106. 4:04of complexity around the that sheer
107. 4:06volume and pace of legal and regulatory
108. 4:10changes and all of this is tied up with
109. 4:12geopolitical events so you're talking
110. 4:14about something like financial sanctions
111. 4:16you know
112. 4:17day doesn't go by where we don't see
113. 4:19dramatic changes coming out of the US or
114. 4:22United Nations and these changes on a
115. 4:25global level very much have a
116. 4:27micro-level impact on firms so I think
117. 4:31the the requirement is really much that
118. 4:33we have practitioners who are
119. 4:34cutting-edge and up-to-date with not
120. 4:37just where regulation is today but where
121. 4:40it's going in the future
122. 4:41reg tech FinTech and AI will all play a
123. 4:45part in that future but in the rapidly
124. 4:47changing field of compliance experienced
125. 4:50trusted advisors will always be needed
126. 4:53the benefits of the expert guidance they
127. 4:56give every day in countless offices
128. 4:58reach beyond international boundaries to
129. 5:01make the whole world a safer place