Tuesday, August 26, 2014
Follow up on my post last week: Shortage of Financial Advisors For Increasing Client Pool - Are the Law Students Prepared For This Career?
Jack J. Kelly of CompliancEx reports:
In 2012 HSBC was fined $1.9 billion to settle allegations that the bank enabled drug cartels and other nefarious not-nice people launder billions of dollars. Thereafter, the bank, without much choice in the matter, ramped up Compliance related spending including hiring 1,000s of new Compliance professionals. The estimated costs run to $1 Billion.
HSBC, fined $1.9 billion by U.S. authorities in 2012 to resolve allegations it enabled Latin American drug cartels to launder billions of dollars, has been beefing up its internal controls in the face of regulatory scrutiny. The London-based lender increased compliance staff to 6,000 from 1,500 over the past four years and is spending an additional annual cost of between $500 million to $1 billion, according to Flint.
Are law students preparing to be practice ready for these anti money laundering positions (that lawyers are well, if not best, suited for)? Few law students follow an anti money laundering & compliance specialization in law school, much less follow up with related externships to claim some experience to be "practice ready". Thus, these positions continue to be filled by the business school graduates.