Compliance experts find firms lack staff skilled in security and regulation

A recent survey conducted by Ireland’s Compliance Institute has revealed a significant skills gap within the financial services sector, potentially exposing firms to heightened financial risk. Of the 125 senior compliance experts who participated in the research, half expressed concern that companies do not possess the requisite skilled workforce required to navigate financial crimes and comply with evolving regulations.

Moreover, an overwhelming 82 percent of respondents believed that the lack of a skilled workforce is heightening the risk of financial fraud for financial service firms. Additionally, more than half of the experts surveyed, 56 percent, voiced their apprehension that Ireland is not producing sufficient talent in compliance and financial crime to meet future demands in the financial services industry.

Michael Kavanagh, CEO of the Compliance Institute, expressed his concern, stating that in an era where financial crime is becoming more intricate, sophisticated, and global, the fact that the majority of compliance experts view talent shortages in financial crime and compliance as increasing regulatory and operational risks for the Irish financial services sector is troubling.

Kavanagh emphasized the increasing complexity of financial crimes, which are now digital, faster to execute, and harder to detect, particularly due to advancements in AI. He underscored the critical need for financial services institutions to have the right personnel and adequately resourced compliance teams to effectively combat financial crime.

He stated that the sector's consistent access to adequately skilled compliance staff is crucial, especially given the overwhelming volume and rapid pace of regulatory changes, which place immense pressure on compliance teams. Kavanagh stressed that the breadth of regulations necessitates significant time, expertise, and operational focus, often straining teams to their limits.

He advised companies to implement necessary measures to ensure their staff are adequately trained and equipped with the necessary skills to tackle regulatory and operational challenges. Furthermore, he highlighted the need for a collective effort from the government and industry to invest more in talent development to enable the Irish financial services sector to prosper and effectively navigate the challenges it faces.