Singapore faces shortage of compliance experts in fight against dirty money
Demand for experienced compliance experts soars in city state as banks go on hiring spree amid the government crackdown on tax evasion
Singapore's fight to stem illicit fund inflows has shoved private bankers into a new quandary - finding enough qualified compliance specialists to ensure the money passing through their accounts is clean.
Like other wealth management centres around the world, Singapore is forcing banks to tighten checks on clients as governments crack down on tax evasion and money laundering.
It's never easy to find the right people - it's a war for talent as far as we are concerned
In Singapore, private bankers say extensive checks on the origin of clients' money, tax status of those funds, whether they have political ties and the reasons behind fund transfers mean it could take up to three months to open a bank account. Five years ago, it would have taken just a week.
Compliance jobs were considered unattractive until a few years ago when the top dollar went to investment bankers and traders. Tougher regulations globally since the 2008 financial crisis have boosted demand for experienced compliance officers, who can get a pay rise of as much as 30 per cent if they change companies, according to a Robert Walters survey this year.
"It's never easy to find the right people, and it's tougher than ever before - it's a war for talent as far as we are concerned," said Conrad Lim, the deputy chief executive at LGT Bank (Singapore) and head of the compliance department in Asia.
Lim's compliance team has more than tripled in size over the past 10 years, but he is still looking to bring in more people as the bank's regulatory burden increases.
Overly onerous know-your-customer checks might lead to longer turnaround times or loss of clients, said Mark Wightman, a partner for wealth and asset management advisory at EY.