Anti-Money Laundering regulation tops list of compliance headaches for 60 per cent of banking executives

  • One in five executives admits to taking risks with sensitive data to meet regulatory demands
  • 59 per cent cite data delivery as a number one challenge in their day-to-day operations
  • EU Directive on Security of Network and Information Systems (NIS) and the EU General Data Protection Regulation (GDPR) are seen as the biggest future challenges

London, UK - 12 October 2016 - Delphix, the market leader in data virtualisation, has revealed the Anti-Money Laundering Directive (AML), the EU-US Privacy Shield and the Market Abuse Directive (MAD I & II) and Regulation (MAR) are the three biggest regulatory pressures across EMEA. The study into the regulations most difficult to comply with from a data and reporting perspective, warned that organisations are worryingly behind in developing the data architectures needed to meet evolving reporting demands and need to overhaul data delivery practices.

Over half (59 per cent) of respondents cited 'delivery' as a number one challenge in their day to day operations, with over a third (38 per cent) claiming high levels of rework hinders their capacity to deliver on data and reporting objectives. Additionally, one in five (20 per cent) claim they are forced to use data that is not fully anonymised as they take increasing risks with sensitive data.

These insufficient processes are leading to major concerns over the consequences for non-compliance. Over half of respondents (53 per cent) fear large financial penalties, followed closely by the loss of customers (51 per cent). Fear of losing banking licenses is ranked as a number one concern by nearly one in five respondents (19 per cent), with brand damage and risk of jail time also highlighted as a worry for one in ten (13 per cent).

"Copying and moving ever-increasing amounts of data for regulatory reporting has become riskier and more difficult," explained Iain Chidgey, vice president, international at Delphix. "Data that is caught in business silos and refreshed at different times quickly becomes stale and of little use for reporting purposes, severely impacting data quality and the ability of teams to comply with the growing regulatory burden."

Due to the time and cost it takes to mask data, banks copy and move data to testing environments or reporting applications without being protected and 18 per cent of respondents admit that data loss as a result of poor data security is a daily challenge. Inefficient data delivery processes are driving concerns about upcoming regulations. Respondents cited regulations that require proof of data integrity and personal information as their biggest future challenges, with 62 per cent naming the EU Directive on Security of Network and Information Systems (NIS) and 54 per cent the EU General Data Protection Regulation (GDPR).

To improve the efficiency of reporting, nearly half of respondents (46 per cent) are invested in speeding up the process of data delivery. While 31 per cent believe improving the quality of test data by using near-real time copies would be advantageous. A fifth of respondents (20 per cent) also ranked the ability to mask sensitive data for testing as a number one priority, followed by 12 per cent who said the same for masking data for reporting.

"These results show that organisations are crying out for improved ways of delivering their data safely and expediently, whether it's across departments, third parties or cloud providers, to reduce compliance risk. A large part of realising this capability lies in inserting a new virtual data layer into infrastructure so that secure data can be delivered on-demand to those who need it. By adopting this approach, one large European Bank was able to report on trade executions within 15 minutes, while also clearing messaging backlogs and eliminating reporting failures for Dodd-Frank requirements," concluded Chidgey. "On top of this, being able to integrate systems so that clean and accurate data can be extracted from legacy systems and shared with reporting applications, is paramount to streamline operations." 

For further information, the Delphix regulatory compliance eBook can be found here.

Delphix commissioned a survey to investigate the regulatory compliance hurdles facing organisations today and how executives feel these can be overcome. Vanson Bourne conducted interviews with 90 EMEA executives including commercial and corporate responsibility decision makers, IT decision makers and risk, compliance and legal decision makers within banking.


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Delphix is the market leader in data virtualization, helping organizations release applications up to 10x faster by delivering secure, virtualized data across the application lifecycle. More than 30 percent of the Global 500 use Delphix software to deliver data across development, testing and reporting environments, improving developer productivity and data security on premises or in the cloud. Delphix is headquartered in Menlo Park, California, with offices around the world, and can be found online at www.delphix.com.