The cost of financial crime prevention in the UK revealed

Financial crime prevention costs UK financial institutions an average of £374,000 every year, according to new research from the global legal business DWF.
By Ismail Mulla
Published 26th Jul 2021, 16:45 BST
Organisations spent £53 annually on financial crime defence for each customer relationship they have.Organisations spent £53 annually on financial crime defence for each customer relationship they have.
Organisations spent £53 annually on financial crime defence for each customer relationship they have.

The survey of 300 financial crime decision makers working in the financial services sector in the UK, also found that on average, organisations spent £53 annually on financial crime defence for each customer relationship they have.

Moreover, they refused an average of £90,240.77 and exited an average of £90,869.52 worth of UK customer relationships for financial crime reasons during the last 12 months.

Hide Ad
Hide Ad

Andrew Jacobs, head of regulatory consulting at DWF said: “Responses to the survey indicated that firms with a revenue of around £10m per year are likely to spend in the region of 1.72 per cent of total revenue on financial crime prevention and deterrence.

“Larger firms are typically spending less than 1 per cent of total revenue to fight financial crime, particularly those with l revenue of £50m or greater. As a cross-section of the Financial Services sector, this tells us that proportionately, smaller firms are spending a greater share of their turnover on financial crime prevention.

“Conversely, firms with greater revenue, £10m plus, are clearly spending most of their financial crime spend on human resources, with over 32 per cent of annual spend being on financial crime roles, compared to those firms with a turnover up to £500,000 for whom financial crime roles never exceeds 27 per cent of total annual financial crime prevention spend.

“This figure and our wider analysis shows us that Human Resources continue to be one of the most effective ways of detecting human behaviour linked to Financial Crime activity.”

Hide Ad
Hide Ad

Financial crime decision makers cited that employee resources in financial crime roles cost their firms an average of £180,000 per year.

---

Support The Yorkshire Post and become a subscriber today.

Your subscription will help us to continue to bring quality news to the people of Yorkshire. In return, you'll see fewer ads on site, get free access to our app and receive exclusive members-only offers.

So, please - if you can - pay for our work. Just £5 per month is the starting point. If you think that which we are trying to achieve is worth more, you can pay us what you think we are worth. By doing so, you will be investing in something that is becoming increasingly rare. Independent journalism that cares less about right and left and more about right and wrong. Journalism you can trust.

Thank you

James Mitchinson

Related topics:DWFYorkshire