More than half of compliance experts believe the financial services sector lacks “sufficiently qualified” professionals to meet “the developing challenges around financial crime”, according to a new national survey.
A further eight in 10 firms reported this lack of skilled workers is “increasing regulatory and operational risks” across the industry, the institute found in a survey of 125 senior compliance experts in the State’s financial services sector.
Institute chief executive Michael Kavanagh described it as “concerning” that “the overwhelming majority” of compliance experts believe this qualification shortfall is increasing risk.
“Financial crime is increasingly digital in nature, faster to execute and more complex to detect”, he said, adding that artificial intelligence (AI) “has made the task of tackling financial crime even more challenging.”
The Central Bank of Ireland released on Friday its annual payment fraud statistics, revealing that almost €180 million was reported in fraudulent transactions in 2025, a 27.2 per cent increase in the amount of money stolen compared to the previous year, with a notable rise in the average value of fraudulent transactions conducted through e-money institutions.
The bank’s deputy governor for consumer and investor protection, Colm Kincaid, said: “All actors in the system from financial firms to technology companies need to continue to improve their systems and controls to reduce the likelihood of these frauds occurring.”
But 56 per cent of respondents to the institute’s survey said they do not believe the Irish financial services sector is developing enough compliance and financial crime talent to meet future demand.
Only 8 per cent “fully” believe the sector has enough properly qualified compliance professionals to deal with the issues at hand, while 41 per cent believe so “to some extent”.
Meanwhile, a further 41 per cent believe moderate shortages exist and 10 per cent say these are significant.
“The results of our survey suggest that skills gaps in the Irish financial services sector mean that many organisations may be already finding it hard to find people with the right skills to combat financial crime,” Kavanagh said.
He continued: “The overwhelming volume and pace of regulatory changes often puts significant pressure on compliance teams in the sector. The sheer breadth of regulations demands a significant allocation of time, expertise, and operational focus, often stretching teams to their limits.
“Firms of course need to take steps themselves to ensure their staff are adequately trained and have the know-how to combat the regulatory and operational risks faced by the Irish financial services sector.
“But there also needs to be a concerted effort by the Government and industry to invest more in talent so that the Irish financial services sector can truly prosper and navigate all the challenges that come its way.”