We may be on the brink of a new era in compliance – or at least in enforcement. This week the Bank of England Governor Mark Carney earned headlines around the world when he suggested that individuals’ base pay as well as their bonuses could be at risk if they failed to act properly. And he was not alone as other regulators and policymakers publicly voiced whether the current regulatory curbs were actually succeeding in improving behaviours in financial services. 

We know that financial fines are getting bigger.  In 2013, the UK regulator issued fines some 18 times greater than its predecessor had in 2008 – but that is by no means the whole story. Our survey on the rising costs of non-compliance – published this week – highlights the increased focus among regulators on greater accountability and personal liability for the individuals involved in compliance breaches. Enforcement cases now routinely see the departure of senior executives and the clawing back of any recent bonuses. In market abuse cases individuals rightly face prison sentences. 

The pressure is on compliance departments, therefore, to keep their businesses – and their bosses - on the right side of their regulators, certainly, and where possible to future-proof their business activities by monitoring and anticipating the latest thinking among the world’s regulators. 

Regulatory intelligence tools play a key part in disseminating that essential information about regulatory change for many firms. Regulatory tracking and anti-money laundering services also increasingly assist those compliance professionals in doing their job efficiently and effectively. Given the major challenges institutions and banks have in this area, providers like us are doing their part and developing fully managed Know Your Customer services to enable firms to conduct their KYC checks diligently and comprehensively while simplifying things for a customer. 

And the work of these compliance professionals is making a real difference not only to financial services but also to some of the most vulnerable people in our society. Only this week Manhattan district attorney Cyrus Vance noted how banks working together supported by Thomson Reuters could stop and catch human traffickers.  Also Britain's first anti-slavery commissioner was appointed this week; the former head of London’s Metropolitan Police Kevin Hyland said he would measure success in his first year by an increase in the number of cases of trafficking being reported and by more prosecutions.  There is clearly more work to do.  The World Bank estimates there are still some 30 million people in slavery across our planet: among the greatest threats to the people who profit from this misery are the money laundering reporting officers – MLROs – who are alert to the financial trails left by such suspicious activity. 

Compliance professionals are now taking their rightful place among executive teams, playing a key role in directing business strategy as the volume of regulation grows and the risk of breaches carries ever darker consequences. They are playing an integral role in innovation and are now more likely to be involved in deals and transactions from the very outset, rather than at the execution stage. 

In short, compliance professionals are increasingly being recognized as constructive contributors to their business strategy. Never before have they had the level of influence they enjoy today. 

The opportunity before them now is to use that access to ensure the right culture and tone comes from the top of their business. Their senior colleagues are now fully accountable for their errors, and the regulators have made it abundantly clear what needs to be done to restore trust in financial services. It is now the compliance professional’s moment to lead the change, and to rebuild and embed trust in the industry.