Recent Release | 20 Mar 2023

True Cost of Compliance – 2023 Report

Thought Leadership and Economic Consulting Teams

Oxford Economics

This report updates our 2020 research on the detection and prevention of financial crime, and it’s cost to the UK financial services sector. We surveyed 300 senior compliance executives about their costs and compliance activities, and used these results to estimate the costs across the UK Financial Services sector. The report, by LexisNexis Risk Solutions, includes interviews with senior compliance officials, and presents the factors driving increases in compliance costs, and how people and technology are employed across the full range of compliance obligations in the fight against fraud and money laundering.

Our survey explored in depth the trends in compliance costs across Financial Institutions in compliance departments and more front line roles, the factors driving compliance costs, and breakdown by type and compliance activity. We then carried out econometric analysis to calculate the total financial crime compliance cost for the UK financial services sector, as well as providing further analysis. This shows that the new sanctions relating to the Ukraine conflict affect a minority of institutions and is not a material factor to explain the persistent increase in compliance costs, which is mostly driven by keeping up with regulatory expectations. There are signs that financial institutions are upgrading their compliance approach, using more technology to improve efficiency and effectiveness.

The experts behind the research

John and Ben, members of the thought leadership and economic consulting teams, respectively, bring years of experience working with clients around the world developing original, evidence-based research and quantitative economic analysis.

John Reiners

Managing Editor, UK & EMEA, Thought Leadership

Ben Skelton

Lead Econometrician, Economic Consulting

Read the report

Loading Form…

You might be interested in

Leveraging Technology to Promote Financial Inclusion

Oxford Economics and Red Hat surveyed executives at financial institutions internationally to discover how they are using technology to expand financial inclusion while gaining business benefits.

Find Out More
US: Four tricky paths to avert default

There are four ways Treasury can avoid a near-term default on any of its obligations: Democrats and Republicans reach a compromise between the House-passed debt limit bill and Democrats' demand for a clean debt limit hike; policymakers kick the can down the road with a short-term debt limit increase; a bipartisan coalition in the House uses a discharge petition to enact a scaled back debt limit bill; or Treasury effectively ignores the debt limit and continues to borrow to pay its obligations on time.

Find Out More
Singapore
THE STRAITS TIMES: MAS pause on hawkish monetary policy stance reveals where it sees growth heading

Arup Raha, Head of Asia Economics at Oxford Economics, shares an op-ed to discuss Singapore's economic growth, following no change in the policy stance of the Monetary Authority of Singapore (MAS) in April.

Find Out More
UK banking
The Banker: Too early to declare victory on market turmoil

Innes McFee, Managing Director for Macro & Investor Services, shares an op-ed to delve into why economic sentiment has been shaken by the recent bank funding turmoil, making the task of maintaining economic growth and bringing inflation down even harder,

Find Out More