In the ever-changing landscape of financial regulations, uncertainty is inevitable for financial institutions. This is especially true given the significant alterations to regulatory bodies, such as the recent shifts within the Consumer Financial Protection Bureau (CFPB) under the current administration. Despite these uncertainties, the importance and necessity of regulatory compliance remain undiminished.
Despite the changes within the CFPB, as a financial institution leader, it is essential to remember that the regulatory landscape of the financial sector is broader than any one organization. Financial institutions must continue to comply with all current consumer, fair lending, Anti-Money Laundering (AML)/Bank Secrecy Act (BSA), Office of Foreign Assets Control (OFAC), and safety and soundness regulations until explicitly directed otherwise by their respective regulatory bodies.
The “Why” Behind Regulatory Compliance
The crux of regulatory compliance extends beyond adherence to rules. It’s about preserving consumer trust, upholding market integrity, and fostering a stable financial ecosystem. This is especially true in times of change, where consistent compliance can be a beacon of stability and trustworthiness.
Regulatory compliance is crucial for:
- Preserving consumer trust, avoiding costly penalties and upholding your institution’s
- Upholding market integrity by safeguarding consumers’ rights and preventing financial crimes.
- Fostering a stable financial ecosystem and contributing positively to the global financial system, which includes enforcing national security and foreign policy.
- Serving as a beacon of stability and trustworthiness, especially during times of regulatory change. Despite these changes, institutions must adhere to all current regulations until specific instructions are given by regulatory bodies, to avoid penalties.
Changes at the regulatory level are part and parcel of the evolving financial sector. Nonetheless, until specific instructions are given by their regulatory bodies, financial institutions must continue to prioritize compliance with all current regulations. A sound approach to compliance reflects your institution’s commitment to your customers, values, and the overall health of the financial sector.
At RKL, we view compliance as an opportunity to enhance productivity and reduce risk. Our Financial Services Group provides a wide range of compliance audits and reviews to help you meet regulations and improve risk management. Interested in learning more about how we can help? Check out our Financial Services Compliance page or contact me at the email address below.
