Property industry feels ‘overwhelmed’ by regulatory burden
72% of businesses are concerned about their ability to stay compliant and almost a third admit being fearful about the next 12 months.
Property industry firms feel increasingly overrun by regulation and in particular anti-money laundering rules, according to SmartSearch’s CEO Phil Cotter (pictured).
The compliance company’s latest study shows that although businesses acknowledge that regulations play a critical role in combating criminal activity, they are finding it increasingly difficult to keep up with all the rule changes.
This is due in part, SmartSearch claims, to a reluctance to embrace digital solutions.
It is also why three-quarters (72%) of firms are now feeling overwhelmed by anti-financial crime compliance demands.
Confidence eroding
And increasing regulatory demands are eroding confidence, with 73% of those questioned saying they lack confidence in their ability to stay compliant with current regulations and 30% expect the pressures to increase over the next 12 months.
Another three-quarters (76%) feel that regulatory changes are hindering expansion and one in ten (13%) feel compliance obligations are damaging customer relations.
To compound the issue, compliance costs have risen sharply and nearly a third of respondents now see it as a serious barrier to profitability.
Businesses must respond accordingly to ensure they are able to grow.”
It is, though, an issue that is unlikely to come under Starmer’s push for regulators to boost growth.
Cotter says: “The Compliance Forecast offers us an outlook on the substantial challenges regulated businesses face in an increasingly complex landscape. With financial crime costing the UK up to £100bn a year, strong regulation is essential.
“But, as it becomes increasingly complex in order to keep pace with criminals, businesses must respond accordingly to ensure they are able to grow and continue to deliver excellent customer service.”
“Adopting a proactive, digital-first strategy offers businesses a streamlined compliance process, reduced costs, and enhanced customer experiences. Organisations that have embraced these solutions are better equipped to navigate evolving regulations and mitigate risks.”
