Why are banks facing a financial crime skills shortage?

Why are banks facing a financial crime skills shortage?

An interview with Anthony Ginn, Head of Risk, Regulatory and Compliance at MThree Consulting.

Anthony, can you please tell the Risk Insights audience a little bit about yourself, your experiences and what your current professional focus is?

I’m Head of Risk, Regulatory and Compliance services at MThree which provide clients with specialised assistance and understanding in Regulatory compliance projects under EU & global standards from strategy and governance, through to implementation. Prior to joining MThree Consulting, I held Trading, Structuring and Operations positions at the Royal Bank of Scotland, Barclays and Norddeutsche Landesbank.

What challenges do Banks face when hiring Financial Crime staff?

Financial crime staff are more valuable now than ever. Our research indicates that there are currently 1,000 vacancies in financial crime across the UK, and just 250 people available with the skills and experience required to fill them. This has resulted in a candidate driven market where banks face an uphill battle to scale teams and equip themselves with the resources required to identify, assess, and mitigate risks presented by fraud and financial crime.

What is driving the demand for skilled Financial Crime staff?

Regulatory pressures, advancing criminal methodologies and internal fraud all factor into the surging demand for financial crime skills. While increased regulations have been received mostly positively by the financial services sector, 77% of retail banks reported them as a driver for hiring more staff. The Fourth Money Laundering Directive (4MLD) came into effect in 2017 and imposes stricter Know-Your-Customer (KYC) and Customer Due Diligence (CDD) obligations. Achieving compliance requires significant investment in technology infrastructure and human resources, and with the upcoming enforcement of 5MLD, which adds amendments to the Anti-Money Laundering Legislation, banks are setting aside additional investment for their financial crime strategy.

Why is the supply of talent not matching the increasing demand?

University career fairs are packed with organisations advertising careers in software development, cyber security, IT support, but only recently, in financial crime. There has been a lack of a clear pathway for graduates to begin careers in financial crime, instead it’s an area which people often side step into from other compliance teams. This has resulted in banks struggling to source the junior talent they need to meet the risks presented by the current market.

How can Banks secure a pipeline of junior Financial Crime talent?

Our Alumni Graduate Programme establishes a clear pathway for graduates to pursue careers in financial crime at top global banks. Our clients are able to up-scale their financial crime teams with skilled junior consultants who have been trained by subject matter experts at our Academy.

What training is delivered as part of the Alumni Graduate Programme?

We benchmark training upon the CISI, FCA recognised qualification in operations. The Investment Operations Certificate (IOC) is the most established CISI (Chartered Institute for Securities & Investment) qualification and is taken by practitioners globally to enhance their knowledge and skills of the administration and operations areas of the financial services sector.

The training programme covers professional skills, industry overview, banking theory and regulation, money laundering, financial crime risk management, controls & remediation, as well as the technologies and systems utilised by banks. The training programme can be combined with our Data Science Alumni Programme, providing Alumni with the skills they need to support financial crime & operations and technology teams.

Trainees also complete the ‘Level 3 Qualification: Combating Financial Crime’ to ensure they have an understanding of the regulations and practices related to combating financial crime.

What are the key benefits of the Alumni Graduate Programme as opposed to onboarding Graduates from University?

We orientate the training programme around each client’s specific needs to ensure Alumni have the required technical skills and knowledge to immediately add value in their role.

Alumni Associates are supported over 24 months with additional training opportunities and receive performance appraisals at 6, 12 and 18 months to ensure they’re progressing at a pace. To support a happy and motivated workforce, we hold regular social, business and charity events that promote an inclusive culture and healthy work-life balance.

At the end of the 2 year programme, clients have the option to move Alumni to their permanent employees at no cost and without restriction.

Learn more about our Alumni Graduate Programme for Financial Crime.