AI & humans needed to prevent financial crimes

TL;DR

Financial crime is expected to rise in 2023, with concerns around sanctions-related crimes and environmental financial crimes increasing.

Transcript

thank you none of you are going to be surprised if I tell you that there is consensus that Financial crime will soar in 2023 this to me is a reminder as in the physical world so in the digital world in this challenging economic environment the annual report by comply advantage on the state of financial crime is out and they're sharing concerns expe... Read More

Key Insights

• ❓ Financial crime is expected to increase in 2023, with concerns around sanctions-related crimes and environmental financial crimes.
• 😤 Tax evasion, cyber crime, fraud, and scams continue to be top concerns for compliance teams.
• 😒 The use of AI in financial crime detection is becoming more widespread, with successful implementation providing a competitive advantage.
• 🤑 Businesses are increasingly concerned about reputational damage from anti-money laundering violations.

Questions & Answers

Q: What are the top concerns in financial crime for businesses?

The top concerns in financial crime for businesses include crimes related to sanctions, environmental financial crimes, tax evasion, cyber crime, fraud, and scams. These crimes are evolving and becoming more innovative, posing challenges for compliance teams.

Q: Is the use of AI in financial crime detection effective?

While AI is being deployed in financial crime detection, it has moved from the expert implementation phase. It is a reminder that AI won't steal jobs, but those who leverage and deploy AI effectively will have an advantage over those who don't.

Q: Are businesses more willing to pay anti-money laundering fines?

In 2022, the number of firms admitting they would pay anti-money laundering fines and make violations increased to 79% from 61% in 2020. However, there is a shift in mindset, with over 34% of surveyed firms worrying about reputational damage from these violations.

Q: How are financial institutions upgrading their processes?

According to the comply Advantage report, correspondent banking and banking processes are upgrading their know your business capabilities and connecting them with anti-money laundering and fraud processes. This indicates a move towards addressing the continuously evolving challenges of financial crime.

Summary & Key Takeaways

• Financial crime is predicted to increase in 2023, with 59% of participants in a survey expecting crime levels to rise.

• Two new types of crimes, sanctions-related crimes and environmental financial crimes, have emerged as significant concerns.

• Tax evasion, cyber crime, fraud, and scams continue to evolve and are top concerns for compliance teams.