Daily Compliance Brief — Supervisors Highlight Data Quality as a Core Financial Crime Control

February 2, 2026

Signal

Supervisory communications over the last 24 hours reinforced that data quality is being assessed as a foundational element of financial crime control effectiveness. Authorities pointed to persistent issues with incomplete, inconsistent, or poorly governed data undermining transaction monitoring, sanctions screening, and customer risk assessments.

Regulators emphasised that control failures linked to data gaps are no longer viewed as technology limitations alone. Weak ownership, inadequate data governance, and insufficient validation processes are increasingly cited as root causes in supervisory findings.

Why it matters

For compliance teams, this elevates data governance to a core supervisory priority alongside traditional AML and sanctions controls. Poor data quality can materially impair monitoring accuracy, escalation decisions, and regulatory reporting, increasing both operational and enforcement risk.

Institutions should reassess accountability for critical data elements, controls over data lineage and completeness, and validation frameworks supporting monitoring and screening systems. Supervisors are increasingly focused on whether firms can demonstrate reliable, well-governed data as a prerequisite for effective financial crime risk management.