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Asia Pacific AML Landscape Heats Up Amidst Emerging Hotspots and Innovative Tech

Shifting Sands of AML in APAC

The anti-money laundering (AML) landscape in Asia Pacific has undergone significant changes since 2022. New hotspots for money launderers have emerged, while innovative technologies are being developed to combat them.

The Rise of Shell Companies

Shell companies have become a major hub for illicit funds, with criminals exploiting loopholes in APAC countries’ regulatory frameworks.

• Loopholes in regulatory frameworks
• Widespread adoption of shell companies

Crypto- and Trade-Based Money Laundering on the Rise

Crypto- and trade-based money laundering continue to rise, fueled by the widespread adoption of cryptocurrencies and inconsistent regulations across the region.

• Inconsistent regulations across APAC countries
• Growing use of cryptocurrencies

Banks Struggle to Keep Pace with AML Threats

Banks are struggling to keep pace with the increasing complexity of AML threats, including:

• Rising investigation and due diligence workloads
• Fragmented regulatory landscapes
• Inefficient name-matching systems

Innovative Technologies Emerge

In response, companies in Asia Pacific are turning to cutting-edge technologies such as generative AI and behavioral biometrics.

Generative AI Enhances Risk Management Insights

Generative AI is being used to enhance risk management insights and scores, while explainable AI provides transparency into AML algorithm decisions.

• Enhanced risk management insights
• Explainable AI for transparent decision-making

Behavioral Biometrics Boost Detection Accuracy

Behavioral biometrics are also being employed as additional layers of detection for mule accounts before actual money transfers occur. The combination of advanced biometrics and behavioral analytics can significantly boost the accuracy and effectiveness of AML systems.

• Additional layers of detection for mule accounts
• Improved accuracy and effectiveness

Collaboration on Data Sharing is Key

Financial institutions cannot combat increasingly sophisticated money-laundering risks alone. Public and private collaboration on data sharing is on the rise, with notable examples such as the Monetary Authority of Singapore’s collaboration with six major banks in the country.

Forrester Report Highlights Top Trends Shaping AML in APAC

In a recent report, Forrester highlighted the top trends shaping AML in Asia Pacific, including technology adoption and regulatory requirements. The report also provides guidance for AML professionals to respond to these trends. To learn more about AML trends in Asia Pacific, read the full report or schedule an inquiry with Forrester experts.

• Top trends shaping AML in APAC
• Guidance for AML professionals
• Access the full report or inquire with Forrester experts