AML Regulations and ISO 20022 Compliance: A Balancing Act for Banks

As financial institutions navigate the ever-changing regulatory landscape, the pressure to remain compliant with multiple mandates simultaneously is becoming more challenging than ever. Among the most pressing for technology leaders is balancing the complexities of financial fraud legislation whilst also preparing for the upcoming ISO 20022 deadline. Both issues require immediate attention, not only to satisfy regulatory demands but also to ensure the ongoing operational integrity and long-term competitiveness of financial institutions.

Anti-money laundering (AML) regulations, in particular, require significant investment and focus to prevent financial crime and protect against reputational damage. According to The Banker (August 2024), UK banks are now dedicating nearly two-thirds of their financial crime compliance budgets to AML-related technology. However, this intense focus risks overshadowing the equally crucial ISO 20022 compliance deadline. Delaying preparations for ISO 20022 could severely hinder a bank’s ability to process payments effectively, undermining consumer confidence and market position.

Balancing Time and Resource Constraints

Technology leaders are tasked with the ongoing challenge of balancing strategic initiatives with the demands of keeping the day-to-day operations running smoothly. The need to maintain ‘business as usual’ while simultaneously preparing to meet critical transformational deadlines like ISO 20022 requires careful resource management and a strategic mindset. These are not competing priorities—they are complementary, and both demand attention.

Effective planning and execution are essential to meeting these demands. ISO 20022 compliance isn’t just about adhering to technical standards; it’s about ensuring systems are resilient, scalable, and capable of driving operational efficiency. Integrating Quality Engineering practices into the transition process is vital to avoiding rushed implementations that could lead to costly disruptions like the technology failures we’ve seen in recent months. By embedding quality from the outset, technology leaders can mitigate risks and ensure their organisations are well-prepared for both current challenges and future opportunities.

Turning Compliance into Competitive Advantage

While meeting the ISO 20022 deadline is essential, it’s important to recognise the broader implications of this shift. Financial institutions shouldn’t view ISO 20022 as a mere compliance exercise – they should be preparing to take full advantage of the opportunities that come with it. The richer data and enhanced transactional capabilities enabled by ISO 20022 can drive operational efficiency, improve risk management, and support more tailored services for your clients. By approaching this transition strategically, with a focus on both compliance and long-term value, you can set your institution up for sustained success in a competitive financial landscape.

How Roq Can Help

At Roq, we understand the challenges of balancing regulatory obligations with the demands of daily operations. Our expertise in Quality Engineering ensures that your ISO 20022 transition is not only timely but also robust and resilient, avoiding the pitfalls of unexpected outages that can damage consumer trust and impact market share.

To support you during this critical transition, we offer a zero-cost, zero-obligation ISO 20022 Readiness Assessment. This assessment provides tailored strategic recommendations aligned with your roadmap, identifies potential risks to budget, quality, and timelines, and prioritises key actions for successful delivery. By focusing your resources where they matter most, we help ensure a smooth and effective transition.

For more information on how Roq can assist you in preparing for ISO 20022 compliance and beyond, or to take advantage of our ISO 20022 Readiness Assessment contact us here or reach out to us via ask@roq.co.uk. Together, we can pave the way for operational excellence and sustained success.