Financial institutions across the world continue to face severe regulatory consequences when compliance gaps arise.
A recent example comes from Oman, where the Financial Services Authority (FSA) revoked the licence of CSI Financial for marketing unauthorised products. The case underscored a key theme in compliance today — that every aspect of regulatory adherence is interconnected, claims Muinmos.
In CSI Financial’s situation, the violations extended beyond marketing breaches to non-compliance with Article 34(a) of the Anti-Money Laundering and Combating the Financing of Terror Law. The regulation requires institutions to assess money laundering and terrorism financing risks in their business operations, including when developing new products or technologies. This reinforces the idea that in compliance, nothing operates in isolation.
A good illustration of this interconnectivity lies in the Client Risk Assessment (CRA). As the foundation of the risk-based approach that governs financial compliance globally, the CRA relies on a wide set of interdependent data points. These include a client’s classification, such as whether they are retail or institutional, the type of products and services they engage with, and their financial background. Other essential elements include screening for politically exposed persons (PEPs), sanctions, and adverse media findings.
However, many financial institutions still rely on multiple point solutions to handle different aspects of the process — one for identity verification, another for screening, and others for data collection and CRA execution. Without an integrated view, it becomes almost impossible to make in-journey compliance decisions, such as escalating a client from a normal Customer Due Diligence (CDD) to an Enhanced Due Diligence (EDD) process.
In contrast, a connected solution links all these data points within one ecosystem. This approach enables financial institutions to conduct real-time, adaptive CRAs, ensuring that risk assessments remain accurate and aligned with evolving data. It also allows for client journeys to be adjusted dynamically based on findings, creating both efficiency and better regulatory outcomes.
Consistency is another key advantage. Using different providers across regions often leads to inconsistent methodologies and varied data presentation. A connected solution standardises how information is evaluated, ensuring a uniform approach across jurisdictions and over time. Muinmos has found that clients using its connected platform have reported a drop of over 50% in case handling time, showing how automation and centralisation can drive measurable gains in compliance performance.
Scalability further strengthens the argument for unified compliance. In a globalised financial environment, expanding into new markets requires systems that can adapt easily. Muinmos reported that 86% of its clients said its connected solution supported their international growth. Fewer contracts, suppliers, and integration points reduce operational complexity, freeing teams to focus on strategic goals.
Ultimately, compliance is converging. The boundaries between anti-money laundering, securities regulations, and broader risk management are blurring. Financial institutions seeking both resilience and flexibility must therefore move towards a single, comprehensive compliance framework. The best solutions today not only ensure regulatory alignment but also provide the agility and efficiency needed to thrive in an increasingly connected regulatory landscape.
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