Customer Due Diligence Challenges in the Middle East

Varadarajan Viswanathan, CAMS-Audit

Financial institutions based in the Middle East have been increasingly on the regulatory radar. Increased enforcement action and stricter enforcement of regulations coupled with the pace of regulatory change has made institutions more risk averse. Furthermore, the increasing cost of compliance and scarcity of trained resources has resulted in de-risking and has become the order of the day. The risk of de-risking is that it will drive the unregulated sector underground or compel them to use alternate or informal means of payment. It is also likely to affect global growth and financial inclusion.

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