A common refrain is the even with compliance, many organizations want to keep headcounts lean. Many employers seem willing to hire at the very senior levels, yet for middle-management to more junior hires, they are in retainment mode. Simply put: if someone leaves, they are generally not replaced. Worse still, stories of layoffs and hiring freezes at banking and financial institutions and multinational corporations (MNCs) abound. For example, HSBC’s recent decision that it would shut its regional geo-political risk unit caused quite a stir. The spotlight chat concludes with a discussion of what knowledge and soft skills, other than being savvy in legal and regulatory matters, legal – particularly in-house/general counsel – and compliance should possess. Ian noted that a greater awareness of political and economic risk was now firmly a part of the remit of many an in-house lawyer or compliance professional at financial institutions and other MNCS. We then move on to our discussion with Lotte who talks about growing up in Sweden and having spent time abroad in the US on account of her father’s postings. She discusses what drew her to work for the IMF, ADB and her commitment to developmental economics. Having run Bank’s financial sector development projects for the past 20 years, Lotte comments on her achievements and how awed she is in the developments in fintech that she has seen during her tenure. Acknowledging her current status as a consultant with the ADB, she talks about how it is to still work with her former colleagues but in a less formal capacity, outside of the organization’s official hierarchy. As Lotte notes, being a consultant enables her to devote time to other interests. She also elaborates on an ADB website post she authored entitled “Five Ways Bamboo Can Revolutionize Finance, Housing, and Sustainability.” She noted that: “Bamboo's fast growth and carbon capture abilities offer a sustainable solution to financial inclusion, housing affordability, and economic resilience in developing countries. Integrating modern technologies with bamboo cultivation can drive economic development while mitigating environmental impacts.” The chat then drifted to another one of her posts entitled “Banks Without Borders: How AI, IDs, and Innovation Are Changing the Game.” Lotte wrote: “Rising compliance costs, regulatory fragmentation, and de-risking are limiting cross-border banking access, but technology-driven solutions offer a path to restore connectivity and resilience.” Regulators often say banks should adopt a risk weighted approach to compliance and not engage in wholesale derisking. Yet, correspondent banking and related AML/KYC issues for certain sectors is a perennial issue, Lotte admits. Concurring the problem’s entrenched nature, the sad truth, derisking occurs when the compliance cost for banks maintaining particular correspondent banking relationships is too great. That can be either because of the meager profit from serving them because of small business volumes, or because of the enhanced risk associated with serving a particular client or category of client. Lotte noted that there is often a lack of basic infrastructure in many emerging markets and that the developed world needs to provide those nations without capital, technology and know-how to catch up. Sadly, biometric safeguards are often not there in the developing world, she said. Many do not have identity cards or smartphones. In that regard, she thinks India’s Aadhaar card initiative is a triumph. Their chat concludes with a reflection on a more recent ADB website post by Lotte entitled “Strengthen Compliance to Safeguard Pacific Banking Access.” She said: “Addressing gaps in financial compliance, upgrading digital infrastructure, and improving regulatory capacity can help Pacific countries build economic resilience and protect vital financial links.” She added, however, that requires resources required for compliance and risk management invariably affect a banking or financial institution’s bottom line.