Latest news with #ComplianceInstitute
Irish Examiner
10-08-2025
- Business
- Irish Examiner
Trump's rules cutbacks could weaken financial crime enforcement
Firms in Ireland's financial services sector fear cutbacks for US regulatory bodies under president Donald Trump's administration could weaken global financial crime enforcement and lead to 'serious vulnerabilities'. The Compliance Institute polled 110 compliance experts working primarily in Irish financial services organisations nationwide, with 78% of respondents saying looser US anti-money-laundering (AML) rules will either make it more difficult for Irish firms to follow EU rules or could have the potential to do so. The survey examined the views of compliance professionals around the deregulatory agenda, which Mr Trump has pursued since he was re-elected earlier this year, which, according to his administration, is aimed at 'reducing unnecessary, burdensome, and costly federal regulations'. Included in this deregulatory agenda is a freeze on all new US financial regulations, a recent U-turn on AML rules that helped track illicit finance, and funding cutbacks for key regulatory bodies. 'The Trump administration's deregulatory agenda has sparked widespread concern across the Irish financial services industry — and not just because it could open the door to global financial crime,' Michael Kavanagh, CEO of the Compliance Institute, said. 'Irish financial services organisations are also alarmed that president Trump's laxer AML rules could make it more difficult for Irish firms to meet their own AML obligations under EU law, leaving them vulnerable to fines and sanctions as a result.' The new survey found that four in 10 financial services organisations believe that looser US AML obligations pose a challenge for Irish companies following EU rules as it will make cross-border compliance more difficult. Almost eight in 10 Irish financial services organisations are concerned that the Trump administration's reduced funding for US regulatory bodies could weaken global crime enforcement, with almost half (46%) saying that it could create 'serious vulnerabilities' and almost a third (32%) believing it could lead to gaps in enforcement.
RTÉ News
07-08-2025
- Business
- RTÉ News
Firms expect impact from sweeping US regulatory changes
An overwhelming majority of Irish financial services organisations expect the sweeping regulatory changes emanating from the US to have an impact on Irish firms. The area where this is most obvious is tariffs. More than nine in ten organisations expect Irish firms to be hit by US regulatory changes, with more than two thirds concerned about the impact of these new rules. A new survey by Ireland's professional body for compliance professionals, the Compliance Institute, also revealed that the majority of those asked believe the EU is entering into a phase of regulatory easing on the back of recent developments, such as the EU's adjustments to sustainability reporting rules and data protection requirements. The survey results come against a backdrop of the looming August 1 deadline for US tariffs on almost all EU goods. The survey revealed: Almost one in five (19%) financial services firms expect US regulatory changes to have "a lot" of impact on Irish firms, while a further 46% believe the policy shifts to have "some" impact. Almost three in ten (28%) expect US policy changes to have just "a little" impact on Irish firms. More than a fifth of financial services organisations are "very" concerned about the shifts in US policy since President Donal Trump was re-elected and almost half (46%) are "a little" concerned. Three in ten say they are not concerned about the US regulatory changes Michael Kavanagh, CEO of the Compliance Institute said: "The significant shifts in US trade policy since US President Donald Trump was re-elected have sparked concerns and uncertainty worldwide, including in Ireland, with both the Central Bank of Ireland and the Economic and Social Research Institute recently warning about the risks these changes pose to the Irish economy. "This is all borne out by the results of our survey, which found that an overwhelming majority (93%) of Irish financial services organisations expect the sweeping regulatory changes emanating from the US to have an impact on Irish firms. "The tariffs imposed and threatened by President Trump since he took up office have triggered market instability, disrupted supply chains, and increased costs for businesses. Given the large volume of goods that Ireland sells to the US, Ireland is very vulnerable to such tariffs. Furthermore, if US trade policies lead to an oversupply of goods in Europe, Irish businesses could face more competition and pricing pressures," he said. "Tariffs can also drive inflation – not just in Ireland, but worldwide, with sweeping repercussions. Any higher prices triggered by tariffs could prompt central banks to adjust interest rates, affecting borrowing and investment, which in turn could slow economic growth. "But tariffs are just one element of the regulatory changes being rolled out under President Trump. His administration is also cracking down on illegal immigration and advancing an ambitious deregulatory agenda aimed at 'reducing unnecessary, burdensome, and costly Federal regulations'. Uncertainty about the US policy environment has the potential to hurt businesses worldwide and may lead firms to hold back on investment decisions, hurting the world economy," Mr Kavanagh said. An EU with less red tape? Earlier this year, the European Council moved to reduce red tape for EU companies, particularly SMEs. In light of this, the Compliance Institute survey also examined whether Irish financial services firms believe the EU is entering a phase or more relaxed rules and regulations. Asked if they were of the view that the EU is entering a phase of regulatory easing: Six in ten (60%) agreed, though the majority of these (52%) still think the EU regulatory landscape will remain stricter than the US (see Table 3 in Appendix). About one in twelve (8%) expect "significant [EU] regulatory easing ahead". A significant four in ten (40%) don't expect any regulatory easing in the EU, with this split down the middle amongst those who believe the EU will maintain a highly regulated environment (20%) and those who don't foresee any meaningful change in the EU regulatory landscape (19%). Mr Kavanagh said, "While strong and good regulations are important, regulatory easing would likely be much welcomed by many businesses and firms across Ireland and the EU. "Indeed, earlier this year, a survey conducted by the Compliance Institute found that nearly six in ten organisations in Ireland's financial sector cited the continuous influx of new EU and Irish regulations as their biggest compliance challenge in 2025. It is clear that the overwhelming volume and pace of regulatory changes is putting significant pressure on compliance teams – so, a more measured approach to regulations and rules could ease the burden of red tape on Irish and EU businesses and perhaps be more conducive to economic growth and prosperity."
Irish Independent
19-07-2025
- Business
- Irish Independent
Your money questions: Will my travel insurance continue to automatically renew every year?
Plus what to do about skyrocketing health insurance premiums, and whether you should scrap your pension contributions in favour of the EIIS Q My travel insurance policy is automatically renewed every year, which suits me. But is there a ban coming on this, and will it apply to all types of insurance? A Under new rules being rolled out by the Central Bank as part of its revised Consumer Protection Code, consumers will no longer have their policies for pet insurance, travel insurance, gadget insurance or dental insurance automatically renewed unless they have provided their consent in advance, said Michael Kavanagh, chief executive of the Compliance Institute.
RTÉ News
15-05-2025
- Business
- RTÉ News
40% of compliance leaders struggling with new regulations
Almost 40% of senior compliance professionals in Ireland's financial services sector are struggling with the volume of new regulatory requirements, new research reveals. The report from the Compliance Institute reveals growing strain on the industry, with many citing EU and Central bank rules as key areas of concern. The top challenge, cited by 42% of respondents, was the sheer volume of regulation, followed by pressures related to EU regulations, the Digital Operational Resilience Act, and resource constraints. The report reveals that 64% of organisations feel prepared for future compliance demands. Just 2% said they're unprepared, while one-third are somewhere in the middle. "Regulation is increasing in pace and complexity, stretching teams and systems to their limits," said Michael Kavanagh, CEO of the Compliance Institute. "While it's encouraging that nearly two-thirds of organisations feel prepared to meet these demands, the reality is that compliance teams are under sustained pressure," he added. According to the report, many teams are struggling to manage regulatory obligations without the support of adequate technology. In terms of the adoption of new technologies such as AI and blockchain, respondents recognise their potential but said they need more guidance, better training and stronger regulatory clarity. Compliance challenges also vary by sector. Credit unions and insurers report added pressure due to sector-specific requirements, while international firms face a balancing act across divergent regulatory frameworks, especially in areas like ESG, where regional expectations often conflict. "Compliance now more than ever is about shaping culture, embedding trust, and enabling sustainable growth," said Mr Kavanagh. "The most successful organisations are those where compliance is integrated early in the decision-making process and where leadership sets the tone from the top," he added.
Irish Independent
29-04-2025
- Business
- Irish Independent
Finance insiders fearful of AI fallout
The data, from the Dublin-based Compliance Institute, also showed that over 80pc of banks and financial services organisations in Ireland are now using AI for customer service, while a third are using it to apply risk-assessment processes and to prevent and detect fraud. The research showed that seven in 10 (69pc) are concerned about the potential for bias in AI decision-making, while six in 10 (59pc) are worried about data privacy and GDPR compliance risks. A similar number (56pc) are concerned about a 'lack of regulatory clarity' around AI. The Compliance Institute polled 150 compliance experts working primarily in Irish financial services organisations nationwide. 'The level of disquiet around the use of AI in organisations, particularly around AI bias and the accountability of AI-driven decisions, is interesting,' said Michael Kavanagh, CEO of the Compliance Institute. 'It suggests perhaps an inherent distrust of AI. Ultimately, AI will never be able to replicate the empathy that humans can bring to decision-making – as well as the nuanced approach they can take. 'While AI can have many benefits for the financial services sector, including its ability to detect fraud and to reduce customer service costs, its fast-growing capabilities and increasingly widespread use have raised concerns, particularly around privacy and misinformation issues and the lack of regularity clarity around AI.' AI-driven tools are not yet comprehensively adopted in the financial services sector, the survey found, with only 2pc of organisations using them 'extensively' and 18pc using them on a limited basis. More than half of the firms (54pc) say they are considering AI for compliance monitoring, fraud detection, or risk management. More than one in four (27pc) have no plans to implement AI tools in the near future. Among organisations currently using AI, its use in personalised financial products was limited to 10pc. 'With only one in five organisations using AI tools, and most of these only doing so on a limited basis, the financial services sector is clearly cautious about the use of AI in firms,' Mr Kavanagh said.
