Banking and Finance Compliance Recruitment Trends in Japan
HOW ARE BANKING & FINANCIAL SERVICES HIRING FOR COMPLIANCE ROLES IN JAPAN?
Compliance isn’t an expense. It’s a cost-saving measure.
This common financial phrase rings even more true today, with growing foreign investment into Asia as businesses look benefit from the region’s growth potential. This comes amidst a growing backdrop of increasingly complex financial crime, where groups seek to profit from a rising digital economy.
In response, government regulators in many countries are stepping up demands for compliance standards for banks and financial institutions to maintain trust and stability in capital markets and the banking system. And while managing compliance requires resources, it is far less costly than dealing with the aftermath of a breach and the loss of reputation and trust in services.
We previously outlined trends in Banking & Financial Services on a broader scale in our 2024 Hays Asia Salary Guide. But to get a deeper look into compliance trends in Japan, we spoke to Saehena Hong, Business Director at Hays Japan for further insights.
This common financial phrase rings even more true today, with growing foreign investment into Asia as businesses look benefit from the region’s growth potential. This comes amidst a growing backdrop of increasingly complex financial crime, where groups seek to profit from a rising digital economy.
In response, government regulators in many countries are stepping up demands for compliance standards for banks and financial institutions to maintain trust and stability in capital markets and the banking system. And while managing compliance requires resources, it is far less costly than dealing with the aftermath of a breach and the loss of reputation and trust in services.
We previously outlined trends in Banking & Financial Services on a broader scale in our 2024 Hays Asia Salary Guide. But to get a deeper look into compliance trends in Japan, we spoke to Saehena Hong, Business Director at Hays Japan for further insights.
CONTENTS
• FINANCIAL CRIME COMPLIANCE TALENT AVAILABILITY IS LIMITED
• THIRD PARTY RISK MANAGEMENT – A HIGHLY SPECIALISED FUNCTION
• AUTOMATION IS STREAMLINING COMPLIANCE
• WHAT IS COMPLIANCE TALENT TODAY LOOKING FOR?
• HOW CAN COMPANIES ATTRACT AND RETAIN COMPLIANCE TALENT TODAY?
• THE MOST IN-DEMAND ROLES FOR COMPLIANCE IN BANKING & FINANCIAL SERVICES
FINANCIAL CRIME COMPLIANCE TALENT AVAILABILITY IS LIMITED
Banks and financial institutions today face a multitude of risks. Money laundering, terrorist financing, cybercrime and fraud are some of the most common types of crimes being carried out by individuals or groups today.
This has not gone unnoticed by authorities, who have implemented increasingly stringent compliance requirements for related companies. Organisations looking to meet these compliance obligations find themselves increasingly reliant on compliance departments capable of meeting and reporting on key regulatory objectives.
This growing demand has spurred interest among candidates who see Financial Crime Compliance (FCC) as an attractive field with opportunities for professional growth. This has resulted in many candidates pursuing ACAMS certification to develop the knowledge and skills required of the role.
Despite this popularity, organisations continue to face roadblocks in securing the right talent for their needs. FCC candidates are required to possess a strong command of both English and Japanese in order to communicate effective with stakeholders and authorities. This runs true for both local candidates who are required to speak English in order to facilitate regulatory tasks required overseas, as well as expats who lack the ability to communicate to local Japanese regulators.
This has not gone unnoticed by authorities, who have implemented increasingly stringent compliance requirements for related companies. Organisations looking to meet these compliance obligations find themselves increasingly reliant on compliance departments capable of meeting and reporting on key regulatory objectives.
This growing demand has spurred interest among candidates who see Financial Crime Compliance (FCC) as an attractive field with opportunities for professional growth. This has resulted in many candidates pursuing ACAMS certification to develop the knowledge and skills required of the role.
Despite this popularity, organisations continue to face roadblocks in securing the right talent for their needs. FCC candidates are required to possess a strong command of both English and Japanese in order to communicate effective with stakeholders and authorities. This runs true for both local candidates who are required to speak English in order to facilitate regulatory tasks required overseas, as well as expats who lack the ability to communicate to local Japanese regulators.
THIRD PARTY RISK MANAGEMENT – A HIGHLY SPECIALISED FUNCTION
Third party risk management (TPRM) is particularly crucial for financial institutions that are increasingly reliant on external parties for solutions in tech, payments and data management. This reliance reduces direct operational control over activities, introducing new risks into the consumer equation.
At the same time, regulators are increasing the pressure on financial institutions to manage their third-party risk. This comes in no small part to organisations facing disruptions, monetary loss and reputational damage’ due to third-party incidents which have grown within the last three years across to a report from KPMG.
Organisations remain responsible for minimising this risk and ensuring the security and privacy of consumer data. However, skilled talent remain niche within Japan, where financial institutions more commonly allocate related tasks to other risk management teams.
At the same time, regulators are increasing the pressure on financial institutions to manage their third-party risk. This comes in no small part to organisations facing disruptions, monetary loss and reputational damage’ due to third-party incidents which have grown within the last three years across to a report from KPMG.
Organisations remain responsible for minimising this risk and ensuring the security and privacy of consumer data. However, skilled talent remain niche within Japan, where financial institutions more commonly allocate related tasks to other risk management teams.
AUTOMATION IS STREAMLINING COMPLIANCE
Automation is transforming the way we work across industries by enhancing efficiency, accuracy, and productivity. Financial compliance is no exception to this trend, enabling continuous monitoring, real-time transaction analysis, and swift identification of suspicious activities.
This is true in Japan, where companies with the resources to implement automation have found success streamlining Know Your Customer (KYC) screening procedures for AML. Even so, there are still critical parts of compliance that require a human touch. Banks and financial institutions still require talent capable of adapting to changing local and international regulations, and to apply them towards developing the right policies for the organisation.
Candidates in Japan will want to develop themselves as all-rounders, emphasising analysis and advisory skills to stand out in future.
This is true in Japan, where companies with the resources to implement automation have found success streamlining Know Your Customer (KYC) screening procedures for AML. Even so, there are still critical parts of compliance that require a human touch. Banks and financial institutions still require talent capable of adapting to changing local and international regulations, and to apply them towards developing the right policies for the organisation.
Candidates in Japan will want to develop themselves as all-rounders, emphasising analysis and advisory skills to stand out in future.
WHAT IS COMPLIANCE TALENT TODAY LOOKING FOR?
There’s no doubt that compliance talent plays an integral part in ensuring banks and financial institutions remain above board. The supply of talent capable of servicing compliance needs in Japan today is limited by the availability of candidates with the prerequisite skills while capable of navigating language barriers.
We are also observing a trend of movement that has bucked industry norms. Where candidates have typically been known to further their careers by moving to international corporations, the reverse is now proving true, with compliance talent seeking out local firms.
Despite lower salary offerings, these local firms were seen to offer better work-life balance compared to their multinational counterparts, where workforces are growing leaner with no reduction in expected output. Local firms are also outperforming foreign organisations at flexible work options, preferring to keep the post-pandemic status quo while multinational institutions revert to fully office-based work.
We are also observing a trend of movement that has bucked industry norms. Where candidates have typically been known to further their careers by moving to international corporations, the reverse is now proving true, with compliance talent seeking out local firms.
Despite lower salary offerings, these local firms were seen to offer better work-life balance compared to their multinational counterparts, where workforces are growing leaner with no reduction in expected output. Local firms are also outperforming foreign organisations at flexible work options, preferring to keep the post-pandemic status quo while multinational institutions revert to fully office-based work.
HOW CAN COMPANIES ATTRACT AND RETAIN COMPLIANCE TALENT TODAY?
So how can companies in Japan do better to retain valuable compliance talent? Competitive benefits packages today that speak to this target group goes beyond basic compensation, and may include health and wellness, flexible work arrangements, internal mobility and career development opportunities. Organisations will want to revisit their Employee Value proposition to ensure it emphasises integrity, empathy and personalisation to attract and retain top talent.
Given the ever-changing landscape of compliance, consider offering courses on new regulations and training in key areas such as cybersecurity, data privacy laws, workplace safety, and diversity. Companies with these initiatives should regularly update their modules to ensure that training remains relevant and aligned with current industry standards.
Given the ever-changing landscape of compliance, consider offering courses on new regulations and training in key areas such as cybersecurity, data privacy laws, workplace safety, and diversity. Companies with these initiatives should regularly update their modules to ensure that training remains relevant and aligned with current industry standards.
THE MOST IN-DEMAND ROLES FOR COMPLIANCE IN BANKING & FINANCIAL SERVICES
These are the top four most in-demand positions in Banking & Financial Services for Japan in 2024, with annual salary ranges:
1. ANTI-MONEY LAUNDERING / FINCRIME COMPLIANCE (JPY 6,000,000 – 24,000,000)
1. ANTI-MONEY LAUNDERING / FINCRIME COMPLIANCE (JPY 6,000,000 – 24,000,000)
A high priority role especially among foreign banks. Responsibilities involve monitoring processes to detect and prevent money laundering and other financial crimes.
2. MARKETS (EQUITY) COMPLIANCE (JPY 6,000,000 – 24,000,000)
A high demand role requiring delicate handling of complicated EQ derivative markets. Responsible for ensuring that the trading activities and operations related to equity markets adhere to relevant laws, regulations, and internal policies.
3. HEAD OF COMPLIANCE / CCO (JPY 22,000,000 – 50,000,000)
Despite a large pool of eager candidates, finding suitable talent that meet the requirements can be difficult. This senior role is responsible for overseeing and managing compliance within an organisation.
4. COMPLIANCE SURVEILLANCE (JPY 6,000,000 – 24,000,000)
A critical role that experiences high turnover due to talent seeking better options. Responsible for ensuring trading activities and communications within the organisation comply with legal and regulatory requirements.
Explore more jobs in Banking & Financial Services here today.
Our Hays Asia Salary Guide covers Japan, China, Hong Kong SAR, Malaysia, Singapore, and Thailand, compiling salary and survey findings of nearly 9,000 employers and professionals across the region.
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