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Conservative corporate compliance: Reflections on a study of compliance responses by South African banks

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posted on 2023-10-26, 04:20 authored by Louis De Koker, J Symington
While corporate non-compliance receives much attention, conservative and over-compliant responses are often ignored. These responses go beyond what is required by a particular regulatory requirement. In many cases, regulators may support such responses because they advance regulatory objectives. In the context of risk-based regulation and compliance, especially the model implemented by the Financial Action Task Force to combat money laundering and financing of terrorists, that may, however, not necessarily be the case. With this risk-based approach, regulated institutions are required to respond to higher risks by adopting enhanced risk mitigation measures and are allowed to simplify those measures where the risks are assessed as low. Failure in the latter cases to simplify risk mitigation measures where appropriate, may be inefficient and, in some instances, may even undermine regulatory objectives. This article investigates the drivers of conservative responses by South African banks to statutory anti-money laundering and counter-terrorist financing laws.

History

Volume

30

Pagination

228 - 254

Location

Annandale, N.S.W.

ISSN

0811-5796

Language

eng

Publication classification

B1 Book chapter; B Book chapter; C Journal article

Copyright notice

2014, Federation Press

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