Geopolitical risks, sanctions complexity and the crucial role of compliance officers

The role of the compliance officer was highlighted as pivotal in addressing geopolitical challenges during the 11th International Compliance Forum, presented by ECOMMBX.

Against the backdrop of constantly shifting political conditions, the discussion focused on early warning signs of geopolitical risks and their impact on the operations of organisations and financial institutions, as well as the importance of quick adaptation to new realities.

During the round-table discussion "The Compliance Officer’s Role in Navigating Political Unrest", experts presented practices and strategies for effectively responding to political instability and the complexity of sanctions.

Vicky Christofidou, AMLCO at ECOMMBX, emphasised the challenges compliance officers face due to rapidly changing decisions from the EU and other authorities. She noted,

They are on the front line, she explained, and required to respond to questions immediately, adapt quickly yet accurately, and prioritise based on the risks involved.

Giorgos Konstantinou, Consultant at AMLex Solutions and Founder & Managing Director at K.G.K. Regutech Advisors and AMLex Solutions Ltd, said that compliance professionals face constantly increasing challenges, including divergences among international regulatory frameworks.

There have been conflicting elements, for example, between EU and U.S. sanctions, and the complexity is growing, said Konstantinou. It’s critical to ensure proper training for teams and to utilise modern tools such as artificial intelligence for effective monitoring, he added.

Dorina Mastora, Deputy Compliance Officer at Elias Neocleous & Co LLC and AML Committee Member at the Cyprus Fiduciary Association (CYFA), remarked that modern political challenges require a different approach from compliance officers.

Geopolitical risks are like whispers—we must be present to hear and interpret them. Understanding these 'red flags' helps us assess risk and prepare our teams with the right tools and guidance, she said.

The discussion was moderated by Andrea Moundi Savvidou, Chair of the Cyprus Compliance Association.

(Source: InBusinessNews)