Navigating Compliance Priorities in Financial Services for 2025

This technical report revisits the compliance priorities for the financial services industry in 2025, initially outlined in December of the previous year. It evaluates the evolving landscape of compliance risks, influenced by technological advancements, geopolitical tensions, and regional priorities. The report presents a mid-year checkpoint to assess whether managing these compliance priorities has aligned with expectations. Key areas of focus include Artificial Intelligence, Financial Crime, Operational Resilience, Third Party Risk Management, and Consumer Protection. The report details how regulatory frameworks, such as the EU's AI Act and the U.K.'s operational resilience requirements, are shaping compliance obligations. It also discusses the challenges posed by financial crime regulations and the increasing scrutiny on cyber resilience and data privacy. The report concludes with insights on the optimization of compliance functions in response to these challenges, emphasizing the industry's commitment to adapting to a complex regulatory environment.