Combating Financial Crime in the Financial Services Industry: A Look at Recent Trends and Technologies
Combating Financial Crime in the Financial Services Industry: A Look at Recent Trends and Technologies
Financial crime continues to be a major challenge for financial services organizations, with the potential for significant financial losses and reputational damage. As a Senior Recruitment and Business Development Consultant working with financial services organizations, I understand the importance of staying up-to-date with the latest trends and technologies in combating financial crime. In this blog post, I'll be sharing some recent news, facts, statistics, and technology changes around financial crime that I believe are worth highlighting.
Recent News:
In recent years, financial regulators around the world have been stepping up their efforts to combat financial crime. In 2020, the Financial Action Task Force (FATF), an intergovernmental organization that sets standards and promotes effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system, released a report on the risks and challenges of virtual assets and virtual asset service providers. The report highlighted the need for increased regulation and supervision of virtual assets and virtual asset service providers to prevent money laundering and terrorist financing.
Facts and Statistics:
According to a report by Refinitiv, a provider of financial markets data and infrastructure, the estimated cost of financial crime for financial services firms is $1.45 trillion per year. This includes costs related to money laundering, bribery and corruption, fraud, and other related crimes. The same report found that regulatory fines for financial crime violations have increased by 160% since 2015.
Technology Changes:
One of the key technology changes that has emerged in recent years is the use of artificial intelligence (AI) and machine learning (ML) to combat financial crime. AI and ML can be used to analyze large amounts of data and detect patterns and anomalies that may indicate financial crime. For example, AI and ML can be used to analyze customer transactions and identify suspicious behavior, such as large transactions with no clear business purpose or transactions involving high-risk jurisdictions.
As financial regulators around the world continue to step up their efforts to combat financial crime, financial services organizations need to stay up-to-date with the latest trends and technologies in this area. By leveraging the latest technologies, such as AI and ML, financial services organizations can better detect and prevent financial crime, which can help to protect their financial assets and reputation. As a Senior Recruitment and Business Development Consultant working with financial services organizations, I am committed to helping my clients stay ahead of the curve in this important area.