Compliance experts find firms lack staff skilled in security and regulation

The report found that the gap in skills is leading to increased financial risk for organisations.

A new report from Ireland’s professional body for compliance professionals, the Compliance Institute, has found evidence of a growing skills gap within financial services. 

51pc of the 125 senior compliance experts who contributed to the research survey said that companies lack the skilled workforce needed to stay on top of financial crimes and meet growing regulatory obligations. 

82pc were of the opinion that financial services firms lacking the necessary skilled workforce are increasing their financial or operational risk, and more than half (56pc) believe Ireland is not developing enough talent in compliance and financial crime to meet future demand in the financial services sector.

Michael Kavanagh, the CEO of the Compliance Institute, said, “At a time when financial crime is becoming more complex, sophisticated and global, it’s concerning that the overwhelming majority of compliance experts believe that talent shortages in the areas of financial crime and compliance are increasing regulatory and operational risks for the Irish financial services sector.”

He added: “Financial crime is increasingly digital in nature, faster to execute and more complex to detect, and furthermore, AI has made the task of tackling financial crime even more challenging. 

“So, it’s crucial that financial services institutions have the right firepower to combat financial crime, and a key part of this is suitably qualified staff and well-resourced compliance teams.”

Kavanagh explained that it is critical that the financial services sector has consistent access to adequately skilled compliance staff, especially as the overwhelming volume and pace of regulatory changes puts pressure on compliance teams in the sector. 

“The sheer breadth of regulations demands a significant allocation of time, expertise and operational focus, often stretching teams to their limits. It has never been more important for the industry to have access to the right talent,” he said. 

He explained that companies should take the necessary steps to ensure that their staff are well-trained and possess the skills needed to meet regulatory and operational challenges. 

He added: “But there also needs to be a concerted effort by the Government and industry to invest more in talent so that the Irish financial services sector can truly prosper and navigate all the challenges that come its way.”

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