The role of organizational culture in financial compliance

Authors Kyriaki Stinga and Dorina Mastora argue that organizational culture is a primary factor in the success of anti-money laundering and sanctions compliance programs. While professionals often emphasize technical controls, governance, and resources, the authors suggest these elements are insufficient without a strong internal culture. Currently, there is a lack of consensus on the exact definition of compliance culture within professional circles. The text notes that organizations often misinterpret culture as merely regulatory adherence or the presence of rigid procedures. Compliance efforts like staff training and policy implementation are considered valuable but distinct from the core concept of culture. Stinga and Mastora observe that professionals trained in structured frameworks struggle to measure or implement culture using standard regulatory methods. They conclude that organizational identity is more indicative of compliance outcomes than technical policy infrastructure alone.